When did you buy the home from x? When did you buy the home from y?

[Cdmir]

I purchased my home on 1/31/2020 and refinanced it in 6/13/2021.  In TurboTax after adding both mortgage interest statements (form 1098), it asks the following:

When did you buy the home from X (first lender): I put 1/31/2020

When did you buy the home from Y (refinance lender): I put 1/31/2020?  Not sure about this one.  Do I put this date or the refinanced date?

Finally after those screens, assuming I filled it out correctly, it asks: "What was the outstanding loan balance on January 1st, 2022?  If you paid this off in 2021, enter the balance on the day you paid it off?"

For Lender X, this confuses me as we did a cash out on refinancing.  Is it the total that was left over when the loan was paid?  Do you know an easy way to find this (it says to contact the lender), but I can't find a form.

For Lender Y, it asks the same question, which can be resolved by reviewing a statement, so this one seems easier.

Any help would be appreciated.  Thanks in advance.

[RaifH]

For Lender X, you are correct that you would want to use the original mortgage date of 1/31/2020 for when you bought the home. For the final balance, that would be the amount of principal that was still owed when you refinanced on June 13, 2021. If you cannot find this on any closing documents of the refinance or your account with Lender X, you can use the same Box 2 Outstanding Mortgage Principal amount from Lender X. The actual amount would actually be a little lower than this for the payments you made from January through June, but it should not impact the calculation if your mortgage is under $750,000 and only slightly if it is above that. 

When TurboTax asks when did you buy the home from lender Y, you will want to answer with the date of the refinance, 6/13/2021. As you said, the loan balance for Lender Y should be easy to get from a recent statement that would have shown the balance on January 1, 2022. 

[JJ_DMB]

As a follow up question:

What if Lender Y then sells the loan to Lender Z?  Since this is not a refinance and not initiated by the buyer should you still put the transfer date of the loan from Y to Z as the date you bought the home?

[DaveF1006]

Yes, you would use the original mortgage date when you purchased the home.

@JJ_DMB