Hi,
Schedule A lines 8-10 are used to limit the home mortgage interest deduction. This is basically accomplished by prorating the total interest paid by a ratio of your allowable mortgage limit divided by your loan balance. My question: For the denominator of the total loan balance, TurboTax appears to use the year end balance which in this case is the balance as of 12/31/24. However, Publication 936 directs to use the average monthly balance. The difference in the limitation result is not overly huge, but is there a reason why TurboTax does not prompt for the monthly average balance and instead uses the year end balance. Am I missing something? Thanks in advance for any comments or clarification.
