@Bostondoc84
Any chance you can explain the calculation you referenced "IRS actually requires you to calculate and report the average mortgage balance held over the year in such cases"?
I couldn't find anything on the IRS on how to actually calculate when you sold your principal residence, everything seemed to be the average mortgage balance for multiple homes?
In my specific example, we sold a house that was below that limit and then bought a house where the interest would be limited. If I think about how it "should" work it would be to take them both separately - all the interest from the loan that was below the limit should be deductible and then the second home should go through the math and the interest on that home should be limited. That makes logical sense to me, but I couldn't find any guidance on the IRS website or worksheet to explain this.
