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Snowman76
Returning Member

2 1098 mortgage interest statements on same property purchased years ago

My loan was sold to another mortgage company so I received 2 each 1098's. 

On the new holder of the mortgage, Block 2 is different from the original mortgage holder.

Block 3 are the same.

New Mortgager has a 03/03/20 in Block 11.

TurboTax  treats this as Sale of the Property and generates a Form 1099-B and Form 8949

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5 Replies
Carl
Level 15

2 1098 mortgage interest statements on same property purchased years ago

First, delete both 1098's. Then start over in the expenses section and work through to the screen, "Report Mortgage Interest".  Enter the 1098 for the old loan first, followed by the "new" loan. (which of course, is not a new loan.)  Then 2 screens later where asked if you refinanced, make sure you select NO.

Take special note that you are "NOT" asked for any amounts other than what is in box 1. That's because on rental property there is no maximum limit, since it's business property and not personal use property.

 

 

 

Carl
Level 15

2 1098 mortgage interest statements on same property purchased years ago

realized I got confused on my end, with an assumption this was concerning rental property. Sorry about that. My bad.

So assuming you're in the "Your Home" section under Deductions and Credits, enter the old 1098 first. Then enter the 2nd 1098 and there's a checkbox where you can indicate if this was a refi or not. Make sure you do "not" indicate this was a refi.

 

Snowman76
Returning Member

2 1098 mortgage interest statements on same property purchased years ago

Still gives me errors.

looks at it as a home sale or 2nd home

Snowman76
Returning Member

2 1098 mortgage interest statements on same property purchased years ago

This is my primary home. Chase Bank sold the Loan to an LLC. Box 2 from Chase is different than the loan buying LLC. TT forces the return into a sale and then goes further along in the "errors" to a 2nd home.

Carl
Level 15

2 1098 mortgage interest statements on same property purchased years ago

It flat out is not possible to report the sale of anything under the Deductions & Credits tab in the "Your Home" section, the "Mortgage Interest, Refinancing and Insurance" sub-section. Just not possible.

Assuming we're dealing with the original loan used to purchase the property, you *must* indicate that it's the original loan for "both" 1098's, because from your perspective, that's exactly what it is.

 

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