Hi. I'm trying to figure out how to calculate an average mortgage balance when I bought and sold a house during 2019 in order to complete the adjusted mortgage interest worksheet. I read the IRS publication on it and it wasn't helpful, it just says generally the dates are first and last of the year when calculating the average but doesn't say when to not use those dates. Depending on how I do this calculation determines if I need to adjust the interest deduction or not. Using the balance at first and last of the year lowers my average balance but doing something for partial year raises it above the 750k threshold. Here is the key info from each loan/home:
Old home -
Originated 9/24/13
Balance on 1/1/19 - $255,365
Sold and closed on 4/5/19 with $249,703 sent as payoff in closing on that day.
Balance is 0 for rest of year
New home
Originated 2/20/29 with beginning balance $800,000
balance on 12/31/19 - $783,825
