I suspect, that as you said the $1,000,000 applies, if the loan is over $1,020,000 average balance ( with the $20,000) that the $20,000 would have no effect on amount deductible. Would allow you to deduct (1000000/loan amount) times interest paid if average loan balance is greater than $1,000,000. Technically, $20,000 would only complicate/be issue below $1,000,000 actually. Above pay grade, but technically only ~98% would be deductible until $750,000 level met. Don’t believe TT would be sophisticated enough to track though.
