Related issue. IRS Pub 936 describes another method of calculating the average balance which is to take the interest paid and divide by the interest rate (Page 13). With two mortgages on two homes (one is for sale, already bought the new one, so the first had a mortgage for 12 months and the second for 3.5 months), I presume the IRS would allow the addition of the two calculated amounts to determine whether the $750,000 threshold is exceeded (Pub 936 doesn't seem to address this).
I cannot see any way in TurboTax to select this calculation option for determining average balances. There is no input for the interest rate either. But using this method gives me a balance below $750k so I can use the full amount of interest deduction; using the TT method of summing the straight average balances causes my deduction to be reduced substantially.
Anyone else run into this, or have a solution?
