OLDER POST (modified)
Box 1. Add up all of mortgage interest paid on mortgages. So add up amounts on all 1098 forms and enter. Put a dummy name line Toll Brothers - Wells Fargo as as Lender (Not really important what name you use)
Box 2. Enter outstanding mortgage balance at beginning of year 1/1/2020 or date purchased in TT. You said your balance is above $750, 000 so your interest deduction willed be limited. When over $750,000 Turbotax normally asks ending balance. Otherwise calculate average mortgage loan outstanding (See IRS Publication 936) for methodology. Could use sum of all end of month principal balances divided by number of months outstanding. If Turbotax doesn't calculate just but that average in Box 2.
Box 3. Date of original mortgage ordination date on property, that is, date of first loan on property. So date you closed with Toll Brothers. Note: There may be a mortgage acquistion date on Wells 1098, put in Box 11.
Box 10 on 1098 or your Real Estates tax bill: Add up all real estate taxes paid and enter in Property (real estate) taxes paid box. On TT interest screen or enter through next TT window “Property Taxes”
so basically add up both interest paid and real estate taxes paid and enter as one 1098 in TT.
Where it asks if refinance I would say yes.
Calculate 750,000 / average loan balance = percentage. Use that percentage and multiple by total interest and see if TT calculates same. If so done.
Keep calculations just in case IRS questions. Not trying to 'cheat', so should not be an issue.
If calculation wrong then will have to override TT. I will cut and paste in a minute.
Any questions repost.
