Mortgage Points on first home purchase

[PHarris54]

Working on a tax return for my granddaughter.  They paid points when they originally got their loan.  Then the loan was sold.  But the program is not letting them deduct the full amount of the points.  The program isn't deducting any of the points???

[KrisD15]

If you have two 1098 forms, and the home (and loan) was purchased in 2024, please enter the (oldest) 1098 for the original loan first-

Enter the first (oldest) 1098 and indicated that it was secured by home 
Select BOTH "new loan with points" and "bought or improved home in 2024"
Enter points
Select YES "This loan was paid off or refinanced with a different lender in 2024". 
(NOTE; If you indicate NO to "paid off or refinanced", the program will add the mortgage balances)

No, not most recent 1098
"HELOC or refinance?" NO
Yes, only used on this home
The points and interest should be added and reported on Schedule A

Enter the second 1098 
Yes, secured by home
Indicate that you bought or improved the home with this loan, but  DO NOT indicate that it was a NEW loan, DO NOT ENTER POINTS A SECOND TIME
Yes, most recent 1098
Neither HELOC nor refinance 
Yes, only used on this home
DONE

I did get a "Let's Check These Entries" when I ran "Smart Check" where I had to indicate if either loan was a refinance. 
I selected "Refinance NO"

The full deduction remained on Schedule A

Rules changed regarding the Home Mortgage Interest deduction several years ago, however Form 1098 was not updated to reflect all the information needed to make a proper calculation.

I am not sure if the "Smart Check" question about the loan(s) being a refinance is by design since there were so many refinancing in the past several years, but I could not eliminate that Smart Check question from being asked when I entered two different 1098 Forms.
 

[PHarris54]

I was able to complete the tax return with this answer.  Thank you