Apparently, TT calculates interest deduction differently. Here's what it does:
1. calculates average balance of the primary mortgage + HELOC2,
2. divides 750k by that number and multiplies that by the interest from primary + HELOC2.
3. adds the entire unadjusted interest of HELOC1
Since TT does not adjust the balance of HELOC1, the overall interest tax deduction is higher, which makes me very suspicious as it contradicts 936 and common sense.
I spent hours talking to different TT experts and none was able to explain the logic and rationalize why we can deduct unadjusted interest from HELOC1, which was refinanced.
One expert even filed the support ticket on my behalf, which returned as 'calculation is correct', which makes me thing that Intuit is not looking into edge cases.
