For example, TT presents me 2 columns for the two banks and asking me for outstanding loan balances and the date of final payment for both banks on Jan 1, 2024 . This incorrectly assumes I paid off the loan in the first bank . All it happened is my loan transferred to the new bank with any involvement from me. The original bank portal shows that my mortgage is closed . After I entered the data, the TT is likely wrongly lowered my deductible 1098 interest from 47471 (on an outstanding loan of 1,046,942when the bank got acquired after Nov 2023 payment to the original bank or 1,045,469 as of Jan 1, 2024 with the new bank) to only 16945. Realizing the mortgage limitation of 750000, the deductible interest of 47471 proportionately should have been at least 34007 or 34055. What is going on in TT calculation and how do I get the correct deductible interest?
The amount in box 2 of the mortgage that was transferred should be reduced to zero. That mortgage was technically paid off when it was transferred. That would fix the issue.
Alternatively, you can combine the two 1098s into one and just keep the amount in box two of your current lienholder.
Either of these approaches will fix your problem.