Mortgage Point not deducting
I got two 1098’s for my home purchase in year 2023, lender sold the loan immediately after home purchase.
First lender Loan amount
BOX 1: 1552.13
BOX 2: 1007162.00
BOX 3: 05/09/2023
BOX 4: 0.00
BOX 5: 0.00
BOX 6: 8339.30 (points)
BOX 7: unchecked
BOX 8: My primary address
BOX 9: 01
BOX 10: 0(taxes paid)
BOX 11: Blank
Second lender (to whom the original loan sold to)
BOX 1: 32,912.22
BOX 2: 1007162.00
BOX 3: 05/09/2023
BOX 4: 0.00
BOX 5: 0.00
BOX 6: 0.00
BOX 7: unchecked
BOX 8: My primary address
BOX 9: 1
BOX 10: other
BOX 11: 07/01/2023
Real Estate Taxes Paid: 5,083.29
Here are my questions:
What should I enter for the first lender in this situation?
For second lender, I am entering Ending Balance $998,489.69 that I got from year end document.
Based on TurboTax our calculation 1098 interest the about is $25,775, which completely ignored points. However, if I remove everything from 1098 section and created one consolidated entry for both 1098’s, Lender name as first lender & second lender, I then see correct deduction number $ 32,012.
I am doing itemized deduction.
Please help me with this situation I spent my whole weekend on this issue.
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It depends. Since you have a situation where the mortgage was sold you must follow the instruction below so that TurboTax carries the full amount of the points to Schedule A.
You should enter the balance of the mortgage on the second 1098 or if as you indicated you combined them without issue, you can complete the return this way. You have all the documents should you need them later.
Review the tax return before filing to be sure all are included if you itemize deductions.
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