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Vicki1
Level 1

Mortgage loan transferred to another bank during 2019.

I had a 740K mortgage loan that got sold to another bank during 2019.  When I enter info on the 2 loans, turbo tax incorrectly thinks I owe a total of almost 1.5M and have maxed out the mortgage interest deduction since it thinks my loans total over 750K.

 

How can I get turbo tax to realize the 740K got transferred to a second bank so the total I owed was about 740 (not twice that)?  Turbotax is adjusting down my mortgage interest deduction since it thinks my loans total over 750K - how do I prevent this?

1 Best answer

Accepted Solutions
DMarkM1
Expert Alumni

Mortgage loan transferred to another bank during 2019.

Follow these steps to get the full interest deduction.

 

1.  Delete both forms 1098 from TurboTax

2.  Enter the oldest 1098 first 

3.  Be sure to indicate the mortgage was paid off

4.  Next enter the new lender 1098

5.  Indicate in box 11 the date the mortgage was purchased; should be the same as the origination date in box 3

7.  Indicate this mortgage is the original as it is, it just got sold to someone else

 

Complete the mortgage area by clicking done and then the deductions area by clicking Wrap up tax breaks at the bottom.  You will get to a graph comparing Standard to Itemized deductions.  Under that graph is a hyperlink to show the itemized deduction breakdown.  It should show all interest entered.

 

 

 

 

 

 

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View solution in original post

3 Replies
DMarkM1
Expert Alumni

Mortgage loan transferred to another bank during 2019.

Follow these steps to get the full interest deduction.

 

1.  Delete both forms 1098 from TurboTax

2.  Enter the oldest 1098 first 

3.  Be sure to indicate the mortgage was paid off

4.  Next enter the new lender 1098

5.  Indicate in box 11 the date the mortgage was purchased; should be the same as the origination date in box 3

7.  Indicate this mortgage is the original as it is, it just got sold to someone else

 

Complete the mortgage area by clicking done and then the deductions area by clicking Wrap up tax breaks at the bottom.  You will get to a graph comparing Standard to Itemized deductions.  Under that graph is a hyperlink to show the itemized deduction breakdown.  It should show all interest entered.

 

 

 

 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

Vicki1
Level 1

Mortgage loan transferred to another bank during 2019.

Thanks!  For step 3 how to I indicate the mortgage was paid off?  I didn't see a place to indicate that.

DianeC958
Expert Alumni

Mortgage loan transferred to another bank during 2019.

There is not a place to indicate that the mortgage was paid off.  This information does not need to be reported.

 

@Vicki1

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