Taxpayer refinanced home in January 2022 and then loan servicer changed 3 times during the year. Taxpayer received 3 forms 1098. What is the best way to report this on tax return?

[bernie10]

No cash was taken out and the mortgage exceeded $1.5 million.

[abctax55]

Edit..ignore this, I missed the 'refi' part in the subject line

As there's no 'new' loan (I assume as that's the case when loans are just sold to a new servicer - but your comment of no cash taken out is a bit confusing) - you would continue with the same allocation as before.

I'm (again) assuming you have been restricting the deduction as the loan exceeds 1 million?

Edit... you add them up, then multiple by the deductible percentage.

[bernie10]

Yes I have been restricting the interest deduction appropriately because did exceed $1 million.

I was looking for the practical reporting of the 3 forms 1098.  Can they all be "lumped" together as one loan or should they be reported as separate transactions?

[abctax55]

The IRS doesn't care if they are listed separately. 

[qbteachmt · Accepted solution]

"Can they all be "lumped" together as one loan or should they be reported as separate transactions?"

You seem to state it is only one loan. The name of the loan processor changed, but there is only the one loan (the refi) and no one changed the loan amount or refinanced the loan. You might even find a client with a loan where the loan terms change, and that is built into the loan terms, and even if that loan is sold on the open market, it's still only that one loan.

They are not separate transactions. It's the same loan. They each and all carry data that is lumped together. No one form is a subset or redundant of another.

If your bank is sold or renamed, you still have that one account at that bank, and your account doesn't change just because the bank changed.