Or do I only have the option to list one home, even though both were my primary residence?
You can enter both forms 1098 as they cover different parts of the year.
I sold my primary residency home in March 2021 then purchased a new home to be used as a primary residency in June 2021. I have a total of 5 1098s (2 from my old home and 3 from my new loan loan).
My old home loan was sold to another lender about a month before I sold my home (the loan amount balance was around 500k when the final pay out amount was completed). My new loan has been transferred twice to new lenders (loan amount is over 900k and I paid approximately 15k in mortgage points).
Can I claim all mortgage interest paid in 2021 on my old primary residency up until the home was sold? Also, how do I go about including all my 1098s on Turbo Tax? I do not want the software thinking I have 2 active loans and my mortgage interest and points deduction being reduced further since the loan amounts exceed the 750k cap.
Yes, you can deduct all of the interest, but there are a couple of conditions.
Single filers and married couples filing jointly can deduct the interest on up to $750,000 for a mortgage if single, a joint filer, or head of household, while married taxpayers filing separately can deduct up to $375,000 each.
With this in mind, it is important to post the i098's correctly. If a mortgage has been paid off, the loan balance is zero. So after you sold the house, the mortgage was paid off. This would be the same for mortgage transfers.