We bough a home on 11/12/21, paid $766 in Mortgage interest for 2021 and paid $17,100 VA origination fee. Our load was sold to another Loan Servicing company. We got two 1098s
Originator of loan's 1098 -- has the interest in box 1 and the $17,100 VA origination fee in Box 5
New Loan Service Company's 1098 -- has no interest in box 1 and the $17,100 VA origination fee in box 5
Questions:
1- I assume I am correct in putting both 1098s in "Mortgage interest....." section of "my home", am I?
2- I assume I have to only show the $17,1000 VA origination fee in box 5 for one of the 1098s, am I correct?
3- if 2 above is correct which one is the correct 1098 (originator or the buyer)?
4- Since the "mortgage insurance" of $17,100 in box 5 is for the VA processing fee and this was wrapped into the loan, What amount do I really put in Box 5 on my tax return?
Thank you in advance for your response.
You only need to enter the form 1098 that has mortgage interest paid in Box 1. The itemized deduction is for interest paid. Since the other lender is not reporting any interest there is nothing to deduct there.
You will enter box 5 just as it is reported on the "originator's" form 1098.
DMarkM1
Thank you, appreciate the reply and information.
Michael