Purchased the home in July 2018. 1098, Box 2 is blank ("Outstanding Principal Balance as of 01/01/2018). Should I leave this blank OR enter the original Loan Principal?

[chrisssm404]

Not sure if Box 2 should be left blank, or if I should enter the original Mortgage Amount. I don't seem to get any kind of deduction with it blank.

[sbbr121]

@chrisssm404 @rachelnam what did you two end up doing? leaving it blank or putting in the original loan amount? I am in a similar situation

[chrisssm404]

We ended up leaving it blank. I did a fake return where I did an itemized deduction and did end up getting some refund even with that box 2 blank, but only because I was Itemizing. I believe because of the new tax structure, and how little interest we paid half-way through the year, the Standard Deduction still was a better savings in the end. This does go along with the Official Turbo Tax answer below

Do let me know if you hear anything differently, I haven't efiled yet.

[Ashby]

You should leave it blank. You may not get a deduction for your mortgage in 2018. With only 5-6 months of mortgage interest paid in, it may be a better outcome if you take the standard deduction. The standard deduction has increased in 2018 and many taxpayers are not itemizing this year because the standard deduction is better. 

Next year, with a full 12 months of interest paid, you may have enough deductions where itemizing will give you the best outcome.

https://ttlc.intuit.com/replies/4208574

[rachelnam]

I find this answer/guidance to be very misleading. In my case I should be itemizing. Filing single/reached 10,000 in SALT/5,000 in mortgage interest...puts me above the 12,000 standard deduction. I have two 1098s because my mortgage was transferred in 2018 to a new lender. The new lender left box 2 blank on the 1098. When I enter the info on the 1098 in TurboTax, I am not able to deduct the mortgage interest on the form from the new lender. I've contacted the new lender and they refuse to issue a corrected 1098 that would have the actual outstanding principal amount as of 1/1/2018. Is this an issue with TurboTax or is the 1098 with nothing in box 2 incorrect even though the lender says it is correct?? Please advise!! This is getting really frustrating. There are several other people in the TT community having the same issue and there seems to be no solid answers/guidance on here.  This is especially important for people that are itemizing. Just because the standard deductions were increased doesn't mean people aren't itemizing!

[fanfare]

how can you have a balance as of Jan 1 2018 if you bought the home in July ??