I received two 1098 forms as my loan was sold. Do I add the amounts together when filing taxes? All figures were different except one which was the property tax.

[ChelsiE2]

When your loan is sold during the year, you should receive two Forms 1098.  One should be from the lender who owned the loan on January 1, 2015 and then sold it.  And the other should be from the lender who bought the loan and held it on December 31, 2015.  

Mortgage Interest Expense:

You should enter the amounts for Mortgage Interest Expense from these Forms 1098 separately, entering each number into TurboTax as shown on each form.   Once you enter the first 1098, you'll be able to select "Add a Lender".  Then you'll be able to add the information from the second 1098.

Property Taxes:

The two property tax numbers can be added together and entered as one number into the box next to "Your Main Home" in the property taxes section of TurboTax.

[aschulman]

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[logan4886]

When I enter both of my 1098 forms, my return drastically decreases.  What am I doing wrong?  My original home loan was sold to another bank and so I have two different 1098 forms to enter but it seems that TurboTax sees my loan amount as greater than $1M

[LeonardS]

You will receive a Form 1098 from each financial institution that serviced your mortgage.  When your mortgage is transferred to a new financial institution for servicing this is not a refinancing of your mortgage.  Your beginning Outstanding Mortgage Box 2 and Mortgage origination date Box 3 do not change when the servicing of your mortgage is transferred to another financial institution. 

If you have not refinanced your mortgage and have multiple Form 1098’s to report, follow these steps. 

• With TurboTax open enter 1098 in the search box 

• Click on Jump to 1098 in the results box 

• Follow the prompts to enter your first Form 1098 

• When you have completed the first Form 1098 click Add another 1098 

• When you have added the last 1098 click on Done 

[veps]

This situation applies to me for 2019 and both of my 1098s showed different Outstanding Mortgage (Box 2) and Mortgage Origination Date (Box 3) values.

[KrisD15]

Enter the older 1098 first. 

Select that it was sold

Enter the second 1098

If the loan was never refinanced, the second 1098 is still Not a refinanced loan. 

If the loan WAS EVER refinanced, it will always be a refinanced loan. 

Box 2 will show the balance of the loan on 01/01/2019 for the first 1098 and the balance on the day the loan was sold for the second 1098. 

[jet37]

This situation applies to me also. The original loan company sent a 1098 covering the first three months of 2019. The company they transferred the loan to for servicing sent a 1098 for the remaining nine months with the date acquired box filled in . They each have different outstanding principal balances. After entering both 1098's with (not as a refinance), TurboTax combines the balances shown in box 2 from each 1098, thinks my loan amount as greater than $1M, and wants me to apply a limit on the interest.

[LeonardS]

You will receive a Form 1098 from each financial institution that serviced your mortgage.  When your mortgage is transferred to a new financial institution for servicing this is not a refinancing of your mortgage.  Your beginning Outstanding Mortgage Box 2 and Mortgage origination date Box 3 do not change when the servicing of your mortgage is transferred to another financial institution. 

If you have not refinanced your mortgage and have multiple Form 1098’s to report, follow these steps. 

• With TurboTax open enter 1098 in the search box 
• Click on Jump to 1098 in the results box 
• Follow the prompts to enter your first Form 1098 
• When you have completed the first Form 1098 click Add another 1098 
• When you have added the last 1098 click on Done 

[logan4886]

How do you select that this loan was sold?  I have deleted and reentered the information numerous times and that selection does not exist.

[jet37]

I already tried these steps, and have the following observations:

1) The outstanding balance on each 1098 is different. The first one has the balance at the beginning of the year, while the second one has the balance on the date servicing responsibility transferred (4/1/2019).

2) The mortgage origination date (Box 3) is the same on both 1098's.

3) The second 1098 shows the date acquired as 4/1/2019 in box 11.

4) After following the steps you described, the program incorrectly combines the Box 2 amounts from each of the 1098's, and triggers the $750,000 principal limit on home loan interest deductions. This generates an error when the performing the Federal check process, loading a check mark in the "yes" box, and requiring me to enter a limit.

It appears this issue has been posted several times, and can be corrected with an update to the program.

[VictoriaD75]

There is a workaround for this. 

For desktop versions:

• In Forms view, locate and click on Tax & Int Wks on the left from the forms list
• On the form, scroll to Mortgage Interest Limited Smart Worksheet
• Click on NO to the right of the question, Does your mortgage interest need to be limited

For online versions:

• Under Deductions & Credits, expand the menu for Your Home
• Click Start/Revisit next to Mortgage Interest and Refinancing (Form 1098)
• Click through until you get to a screen that says Do any of these situations apply to you? Mark Yes.
• On the next screen, take out the zero.
• Click back and choose No.

[Bmandella]

There is no option for this loan was sold 

[DianeC958]

No, you do not add the amounts together on your 1098 forms.  Please enter each form separately with the information on that form. When you get to the question " Is this the original loan you took out to purchase the property?" the answer is Yes.  Just because the loan was sold it is still the loan that was taken out to purchase the property.

[potsticker]

Hi, i have the same problem here.

to recap.

1. there is no "SOLD" option when entering the first 1098.

2. if enter as the expert suggested and choose NO limit on the mortgage interest deduction, then

the state filing thinks the loan balance is almost double what it actually is.

3. none of the expert answer here answered the way to solve this problem.

did anyone managed to solved this? or did everyone just moved onto another software.

i read that this problem was already there for 2018. How can this not be solved?

frustrated

Frank