I have the same exact problem; we too purchased a home in December and our loan exceeds $750K. Pub. 936 is so vague on this topic. I agree it seems wrong that we should be penalized for purchasing late in the year. Doesn't it seem more logical to have zeroes for each month (Jan through Nov) and then the full loan amount ($784K in our case) for one month? That would make the average $65,333 per month in our case, which seems more reasonable. Someone, please explain further the logic behind doing it as explained TurboTaxAnita above. Thanks!
