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?
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.
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.
Thanks! For step 3 how to I indicate the mortgage was paid off? I didn't see a place to indicate that.
There is not a place to indicate that the mortgage was paid off. This information does not need to be reported.