Deducting points when overlap of mortgages

[GESM11]

I purchased my new primary residence and did some renovations on it before moving and selling my former primary residence.  The total time I owned both homes was 5 months and 3 weeks (all during 2022).  I paid points on the new primary residence loan believing they would be deductible.  After inputting my 1098s (both loans were sold during 2022, adding to the confusion) Turbo Tax is amortizing the points over the life of the new loan.  As I read the IRS regulations, because the second home was intended as my primary residence (and currently is my primary residence), the points should be fully deductible.  I suspect the program is treating this as a second home because of the overlap and no place to show the first house has been sold.  Is there a way to force it to allow the deduction of the full points paid in 2022?  Note:  the total of both loans combined did not exceed the $750K threshold.  I am filing as a single taxpayer.

[PatriciaV · Accepted solution]

You may wish to review your answers to some of the questions about your mortgage loans. Be sure both are marked as secured by your main home and that the funds were fully used to buy/build your main home. These factors should allow you to choose between deducting and amortizing the points on the second loan. 

Note: If you have already entered the 1098 from the lender that purchased the new loan, delete that from the 1098 list before you review the other two loans. Once you see the points are fully deducted, then enter the 1098 for the current loan.

[GESM11]

Patricia --

Thank you for trying to help me, but it was still insisting on amortizing points and when I added the second 1098 (from the company that bought the loan) it was zeroing out the points altogether.  I had initially written a reply to that effect.  But in continuing to try things, I clicked on something that gave me a different help screen where it explained that both I paid points and I bought or improved my home with this loan had to be checked for the full amount to be shown.  I guess at some point in my trying different things one had become unchecked.  So I checked both boxes and finally, it allowed for deduction of the full amount paid in points.