I had a home loan starting in 2019.
on Jan 1, 2020 the loan balance was $751,392.29
on 11/3/2020 this loan had a balance of $741,230.02 and was paid in full (refinanced)
loan 1 had an average balance of (751,392.29+741,230.02)/2 = 746,311.15 over 10 months
on 11/2/2020 my refinance loan was originated at $749,000
on 12/31/2020 the balance of the refi was $746,426.17
loan 2 had an average balance of (749,000 + 746,426.17)/2= 747,713.08 over 2 months
Turbo tax is saying my average mortgage balance for the year is $1,494,024 and therefore saying I can only deduct 50.2% of my interest paid. Is this correct? My Understanding is that my average for the year should be under $750,000. It seems like its calculating as if I had both loans concurrently, the whole year. Searching online it seems like this was an issue last year as well... HELP?
