Sorry, this is not the problem we are discussing. We are not trying to claim and "interest adjustment". The issue is incorrect loan balance being doubled and exceeding the $1m threshold of CA and causing a % deduction in qualified interest deduction (when all interest should be deductible)
The issue is related to CA taxes "Deductible Home Mortgage Interest Worksheet" part 2 Qualified Loan Limit. The form incorrecting calculates the "average balance of all grandfathered debt" with the sum of all debt, even when refinance/sold loans are for the same loan and there for the same debt and average debt over time.
So instead of an average debt of $400k, the form incorrectly reports our average debt at $1,200k (for three loans) and there for Part 3 only deducts the % upto $1,000k.
It seems that the "ending year balance" and "average balance" are incorrect. The "average loan balance" on Federal Home Int Wkst, does not match
This issue still exists and is urgent. Anyone in california (30 mil people) who refinance their loan in 2019 (a good year with low mortgage interest rates) will have this error.
