Should I enter separate 1098 forms for the house I sold and the one I bought in 2020? Or should I combine? I used the same lender for both mortgages.

[julianna-mullen]

I sold my primary residence in July 2020 and bought another primary residence in August 2020. Both mortgages, old and new, are with the same lender, and I received a separate 1098 for each mortgage. Should I combine mortgage interest for each in Box 1, but use the  new mortgage's outstanding principal in Box 2? Old mortgage 1098 has no real estate taxes listed, but new mortgage 1098 does (new home is also in a different state)--is that a cause for entering each separately? I'm reporting the sale on Schedule D and I do not have a 1099-S.

[ErnieS0]

Enter all your Form 1098s separately. Combining the numbers may lead to incorrect calculations.

Having residences in different states does not matter in federal.

Check your Schedule D to make sure your home sale is reported there, even if there is no gain. The IRS has audited many customers who did not report their home sale (because it was unnecessary), resulting in letter writing and sometimes amended returns to report a nontaxable sale. 

If you home sale is NOT on Schedule D, check the 1099-S box (even if you did not receive the form). Checking the box will put the home sale on Schedule D.

[julianna-mullen]

Thank you! That helps a lot.