1098 form - mortgage was bought buy another vendor in the same year

[Khaught_92]

Hello,

I have two 1098 for my one mortgage. My mortgage was sold to another company December 1st 2024. I'm struggling how to enter this on my taxes. Do I fill out two 1098's? Or do I combine them all on one? If so which lender do I use in the lender name? 

Also in box 10 on my 1098's is blank, but I paid property taxes through my escrow. Do I enter those separately or do I not enter them at all since box 10 in blank?

[MindyB]

Yes, you can enter both 1098s.  However, you can leave the outstanding mortgage principal reported in Box 2 of the mortgage that was sold blank or zero.  This will ensure your mortgage limitation, if applicable, isn't skewed (the calculation will add them together).

Box 10 isn't required by the lender but it's helpful.  You can add the amounts that were paid into the Box 10 (not the escrowed amounts you paid each month, but the total tax the bank paid on your behalf to the tax collector- check your escrow statements to confirm).

[zomboo]

You should enter your 1098's in chronological order and enter data from them exactly.  For the first 1098, check the boxes for 'This loan was refinanced or sold in 2024' and 'This is not the most recent 1098'. For the second 1098, do not check the boxes for 'This loan is a refinance of a previous loan' or box 'This loan was sold or refinanced in 2024' but do check the box for 'This is the most recent 1098'. Note: I am not sure of the exact wording of the selections presented in TT but you get the idea.