We had two refinance both in 2017 and 2018. We received two 1098s. It is asking for the original total of the refinanced loan. Which loan total do I enter?

[Olive11]

We purchased our home in 2002 for 218K.  We refinanced in 2017 with a new total of 230K.  We again refinanced in 2018 for a new total of 271K.  We received two 1098.  When entering the first one, it asks if the loan was the original loan.  Being that it was a refinanced loan, I said "no".  It ask for the original loan amount, I put the 2002 balance of 218K. When entering the 2nd 1098, it asked the same questions.  I again said "no" to the loan being the original loan to buy the home.  What total do I use as the original loan total?  The 2002 total of 218K or the 20117 total of 230K?  Also it asks if the loan was use to purchase the home and for repairs.  The 271K total paid off the 230K.  10K went to home repairs and the remaining balance went to pay of bills.  So would I say that 240K went towards purchasing the home and for home improvements?

[KrisD]

The original loan balance was always 218,000, so that is what you will enter for both.

You need to report how much of the 53,000 (271,000-218,000) went to the home. 

Enter the older 1098, the outstanding principal as of 1/1/2018 should be in Box 2

Was this loan paid off or refinanced with a different lender in 2018?

YES

If you paid off your loan this year, we need its final principal balance. This is the amount you owed before you made your final payment, without interest included.

enter whatever that was (around 230,000)

Is this loan a home equity line of credit or a loan you've ever refinanced?

Answer "Yes" it was a refinance

               Take out cash? 

Yes, (around 15,000?)

Answer how much was used on the house

Enter the second 1098

Box 2 should be blank if it was refinanced in 2018, the program may show an error, but if you enter a 2018 origination date, you can move forward. 

Was this loan paid off or refinanced with a different lender in 2018?

NO

Is this loan a home equity line of credit or a loan you've ever refinanced?

YES

               Which one?

Refinanced

               Take out cash? 

Yes, (around 41,000?)

How much of this was used on the house?