For Mortgage more than 750k acquired after Dec 2017, what is the right way to calculate allowable mortgage interest amount?
I believe it is 750k/(mortgage amount) * mortgage interest paid.
However, the question is on 'mortgage amount'. I see turbotax is taking the mortgage outstanding at the start of the year for the denominator.
I believe IRS allows for the "average of mortgage amount beginning of the tax year and end of tax year". That works out to be lower denominator and hence more allowable itemized deduction. Why is Turbotax not taking average but the beginning of the year mortgage amount?
