Purchased a home during 2024, and the loan was sold to another bank. received 2 form 1098, on the first, should i add the original principle of loan and repayment date?

[james-cosgrove-2]

currently the first 1098 is blank for outstanding principle and has no repayment date, should it be when the other bank purchased the loan?

[MonikaK1]

If you have two 1098's for one home because a loan was sold to another lender, it’s not the same as a refinance, but you’ll still need to enter each 1098 separately. Enter the items exactly as they appear on your forms including the boxes about outstanding principal and repayment date.

Follow the steps below for this situation. When you follow these steps and answer the questions in the interview, TurboTax will recognize that the first loan was paid off.

Enter the original (sold) loan first:

1. Sign in to TurboTax and select Pick up where you left off or Review/Edit under Deductions & Credits.
2. Select Show more next to Your Home and Start or Revisit next to Mortgage Interest and Refinancing (Form 1098).
3. Answer Did you pay any home loans in 2023? and Continue.
4. You can either sign in to your financial institution and import your 1098 forms, or select Change how I enter my form.
5. Next, you can either upload a digital copy or Type it in myself.
6. Continue through and be sure to enter this 1098 exactly as it appears.
7. Answer the questions, and when you get to the Let's see if this is the most recent form for this loan screen, answer No to Is the 1098 you're working on now the most recent for your loan?.
8. On the next Let's get some details about this loan screen, answer Yes to Is this the original loan you used to buy your property?
9. Select Continue to be taken back to the Your 1098 info so far screen.

Then enter the 1098 for the new loan

1. On the Your 1098 info so far screen, select Add another 1098 and continue through to either import or enter your information manually.
2. Answer the questions accordingly and complete your 1098 info exactly as it appears on your form.
3. On the Let's see if this is the most recent form for this loan screen, answer Yes to Is the 1098 you're working on now the most recent for your loan?
4. On the next Let's get some details about this loan screen, answer Yes to Is this the original loan you used to buy your property? Even though the loan is with a new lender, it's still considered the original loan for this calculation.
5. When you're all done, you'll see both your forms on the Your 1098 info so far screen. You can Continue through to finish and file your return.

See this TurboTax help article for more information.

[Edited 02/04/25| 7:32am PST]  @james-cosgrove-2 :  (edited) 

[rotis93]

Hi there, I am in a similar situation. I purchased my home in Jan 2024 and the mortgage was sold to another bank in July 2024. Both 1098 forms have the original "Points Paid on Purchase of Principacl Residence" (Box 6 on 1098) on them and when syncing them into Turbotax, it essentially doubles the points I paid upon purchase if entered exactly as shown on the 1098 forms.

Do I manually enter "0" for the current mortgage holder's 1098 form? Can you please clarify? Thanks!

Ex. 

Mortgage Holder 1: Points paid upon purchase of home (Box 6) = $10,000

Mortgage Holder 2 (current): Also displays points paid upon purchase of home (Box 6) = $10,000

[KrisD15]

Yes, you want to enter the points paid in the year. Since they both reported the same points, you'll have to edit the second one so the full amount of points is listed on the first.