Yes, like in many other cases neither the instructions nor official pronounceent give an example of certain common situations
forgot if i gave an example in previous reply
this is an example of how i look at the law post 2018 (the only difference is pre-2018 the cap was $1M)
say 1/1 and 12/31 balance is $1M on both dates and you pay $60K (6%) in interest. since the cap is $750K only 75% or $45K is deductible. say your balance on 5/1 and 12/31 was $1M. at 6% you would pay $40K in interest. again 75% would deductible or $30K
$60K for the full year times 8 (months loan outstanding) divided by 12 is $40K and 75% of that is $30K
to me the results are logical
you do have the option of consulting a pro so see what the results would be if monthly averages were you. But then there's the cost vs any tax benefit.
perhaps others on this forum will chip in with their opinions.
