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Get your taxes done using TurboTax
Technically no, this is not what the instructions for Table 1 say. You don't run through the table for each mortgage, get the deductible interest for each one separately, and then add the individual interest amounts together. You figure the average acquisition balance and average total balance for each mortgage (if you only used the borrowed funds on your home, are the same value) and then add up the average values and run through the table once with theses averages.
However, we both believe you are entitled to deduct all of the interest paid between both homes in 2023. You just need to be able to explain how you calculated the amount of interest you claimed. The fairest way I have been suggesting is to amortize the average balance over 12 months. For each loan total up monthly balance for Jan through Dec, with 0 for the months the loan was not held and divide by 12. To be even fairer, zero out the balance and interest for the sold home mortgage in the months the loans overlap.
This method applies to refinances or when you take out a HELOC or when you have a mixed-use mortgage. So why does it not apply when you sell and buy a new home in the same year? Because in the case of a refinance or second mortgage, both loans are secured by the same main home and that home remained your main home all year. In the sell/buy case, you have two different homes securing the loans and neither was you main home for all 12 twelve months.