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Thanks Dave
This looks like a workaround but in fact I can't do this as the software blocks me from entering a zero value for a 1098.
I cannot understand why this relative simple situation (selling a house and buying another with 2x 1098 for the year) is not covered as a walk-through topic. Please flag this to the TT development team.
I've spent most of the day stuck on this now and its not resolved....unfortunately I'm going to have to go to a competitor offering in person assistance if I cant get this done 'free and clear' in TT
Yes, I have a solution to your dilemma. When you record your first two 1098's regarding the house that was sold, enter 0 in box 2 because this is not your outstanding loan balance anymore. For the second 1098, enter $644K in box 2 since this is the balance of your Mortgage that you are currently paying on.
Let me know how this works for you.
If I search on "multiple 1098" in turbo tax online, I see a result with heading
"What do I do if I have multiple 1098s from refinancing my home debt?"
This topic helps in entering info from multiple 1098s. In fact, they are saying to manually sum up all 1098s and enter the info.
However I am not sure what lender name I should be using if I am summing up mortgage interest from all 1098s!
I suggest you use the last (most recent) since that will carry forward to next year and should have the correct ending loan balance.
I agree Am having same issues with having bought and sold primary residence in 2020
No one at Turbo Tax can figure this out - but I did myself (after two hours on the phone with very inept representatives). HERE IS THE SOLUTION!!! Go to Forms. Go to Home Int. Wksht for the property you sold. Go down to Home Mortgage Interest Limitation Smart Worksheet. Go to Box E: Outstanding mortgage principal as of 12/31/2020 (or pay-off date...). Hard-key this to $0 (it automatically puts in the 1098 balance in there which is incorrect). Then go back to the Deductible Home Mortgage Interest Worksheet and look at line 18 to make sure it is $0, which means all of your mortgage interest has been deducted without limit. I hope this helps!!!!
No one from TT will like my posting. I've been using TT for YEARS but no more! I had tons of issues and never got any help TT this year. I'm now trying to create a "dummy" return to see how the sale or my old house and the purchase of a new house will affect my taxes. I want to be certain that I have send adequate funds to the IRS for the estimated taxes. I have had the same issues noted above. And TT is NOT simple to use on this matter. I "give up." I've also changed states. So, I'm hiring a CPA. I'd rather pay someone to tackle this than deal with TT any longer. I'm disgusted by how difficult these forms are!! It's beyond stupid!
Thank you! I had used the same amount as the original loan since it was sold to the new lender less than two weeks after the purchase date. I entered the value of zero and it indeed worked but I have no idea why it did.
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