Should I enter 1,2, or 3 1098s? I have 1 home but ...
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HowardG
New Member

Should I enter 1,2, or 3 1098s? I have 1 home but 3 1098s - 1 is original loan, 1 is refinancing, and 1 when refinanced loan was sold.

Calculated interest looks wrong unless  I combined into 1 - because it sums the balances (and goes above $1M).  But if I only do one - I worry that I lose the grandfathering of my original loan before 2017 (and the $1M limit)  And if I only do one - what do I put for all the other fields?
6 Replies
DaveF1006
Employee Tax Expert

Should I enter 1,2, or 3 1098s? I have 1 home but 3 1098s - 1 is original loan, 1 is refinancing, and 1 when refinanced loan was sold.

in your case, you will enter the outstanding mortgage balance in Box 2 in the 1098 for the original loan and leave Box 2 blank in the other two 1098's. If the mortgage balances differ in all three 1098's, take an average balance and enter that amount in Box 2 in the 1098 for the original loan. i 

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HowardG
New Member

Should I enter 1,2, or 3 1098s? I have 1 home but 3 1098s - 1 is original loan, 1 is refinancing, and 1 when refinanced loan was sold.

Thanks for the help. 

 

Turbotax seems very unhappy with me leaving Box 2 blank (and ultimately made me put a number - 0 - in it). And then it seems to be deducting 100% of my paid interest when I think it should be deducting slightly less (my loan balance is a hair over $1M)  So it seems like this isn't quite right either.  Any ideas / suggestions?

 

Really appreciate the help.

HowardG
New Member

Should I enter 1,2, or 3 1098s? I have 1 home but 3 1098s - 1 is original loan, 1 is refinancing, and 1 when refinanced loan was sold.

Also - the new mortgage had points.  I assume I just enter that as normal on the new loan (but only one time, on the new loan but not on the new loan that was sold) .  The value of the deduction for points seems to be changing a lot in the various situations.

DaveF1006
Employee Tax Expert

Should I enter 1,2, or 3 1098s? I have 1 home but 3 1098s - 1 is original loan, 1 is refinancing, and 1 when refinanced loan was sold.

Yes, you would enter these in the new loan.

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HowardG
New Member

Should I enter 1,2, or 3 1098s? I have 1 home but 3 1098s - 1 is original loan, 1 is refinancing, and 1 when refinanced loan was sold.

Thanks again for all of the help.   

 

Just wanted to see if you had any thoughts on if it's ok that Turbotax seems very unhappy with me leaving Box 2 blank (and ultimately made me put a number - 0 - in it). When I do this it seems to be deducting 100% of my paid interest when I think it should be deducting slightly less (my loan balance is a hair over $1M)  So it seems like this isn't quite right either.  Any ideas / suggestions?

 

Again - really appreciate the help.

Cynthiad66
Employee Tax Expert

Should I enter 1,2, or 3 1098s? I have 1 home but 3 1098s - 1 is original loan, 1 is refinancing, and 1 when refinanced loan was sold.

Box 2 does require a number.  Please try this:

 

If there is a refi and there was an outstanding mortgage principal listed in both of them on Line 2 on the 1098. When you do put an outstanding balance in both forms, then the program adds them together and if that number is greater than $750k, then it puts you in the category to "limit interest". To get that to go away, you need to go back to the deductions section and click on "edit" mortgage interest statement. Change the line 2 of the mortgage that you no longer owe on (like the one that you refinanced and paid off) to a 0 (zero) because you have refinanced out of that loan and no longer have an "outstanding mortgage principal". Once you change one of them to zero (the one that was paid off by the refinance) then it should no longer pop up with that error at the end when you go to file. 

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