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Entering $0 for Box 2 is allowing people resolve this error in filing their return.
The value of box 2 states the value of the loan as of 01/01/2020. Since the loan started after that there is not a balance for the loan as of that date.
If this loan is a refinance answer the question yes that it is A mortgage loan that I have refinanced.
So I had my original loan which started in 2019 with X company, then in early 2020 I refinanced with Y company, then shortly after that my loan was sold to Z company and I am still at Z company. So are you saying that for X company, I should state I refinanced that loan and then for Y company put '0' in box 2 and then for Z company, put the loan amount as of 1/1/2021?
Yes.
Entering $1 in box 2 for Company Y will not have any effect on your tax calculation and will not generate an error in either TurboTax or with the IRS, From an economic perspective, it is accurate - you owed virtually nothing on this mortgage at the end of 2020.
There are many places in TurboTax where you must make a non-zero entry, primarily to let the program know that you answered the question and that the answer makes some sense.
In this case, entering "$1" tells the program that you didn't forget to answer the question and that you had at least some amount of a mortgage loan balance to justify claiming an interest deduction.
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