Sitting here trying to fool TT.
Loan 1 - Put in 2017 date, $0 loan balance and interest paid on Loan 1.
Loan 2 - put in 2017 date again and then put in your calculated average as 1/1/20 balance and then again as ending so TTT calculates interest deduction using your average.
Haven’t looked to see if simpler override where you can enter an average principal.
Just tried and have to enter $1 as outstanding on Loan 1 or TT won’t accept, but that still leaves the 930,000 versus 1,100,000 problem which I couldn’t find a quick TT fix. So best thought is go to Deductible Home Mortgage Interest Worksheet Part 2 Line 16 and right click, click Override, and enter your calculated deductible interest 100% of Loan 1 and ~85% of Loan 2 as a total. This will transfer correct amount to Schedule A. Keep your worksheets to present to IRS if any questions. Remember you are trying to fool TT and you are giving correct amount to IRS.
Overridedid not create an error on Federal review.
