Thank you for you answer. @GSD77
Clarification: the loan refinanced in 2020 was $930k
I think this is correct:
the Loan Refinanced ($930k) in 2020 with a larger one ($1.1M including cash-out for improvements)
$930k loan originated Nov 2017, so $1M limit applies to its balance of 930k which is grandfathered over as the portion of the new loan, ($1.1M) that is deductible?
(930,000/1,100,000) x total interest = deductible interest
I'm going to forget about the $20k already spent in 24 months prior as the entire additional cash-out is intended for improvements anyway.
Does this sound correct?
Must I still calculate the Avg monthly principal balance per Pub 936 as well or will TT do it?
Thank you in advance
