Hi,
I have a first property (with a first loan of 350K) that i converted from primary to rental in June 2020. Bought a second property after taking a second loan for 650K and also refinanced it during 2020. Total I have 3 1098s. Note that i 've been following the other open topic with multiple 1098s and the issue that TT has, so this thread is NOT trying to ask the same. Note also that i have read that, for the first property, I need to prorate the interest (lets say for simplicity 50% was a primary and 50% was a rental), 50% of interest will go to Schedule E and 50% to Schedule A. So, this question is not about this either.
I want to check if the following understanding correct, with regards to the mortgage interest deduction of primary residence and the 750K limitation: Should i treat my situation as follows: For the first half of the year I had a loan of 350K related to my primary residence, and for the second half of the year, i had a loan of 650K related to my primary residence, and therefore i never went over the 750K limitation. In other words, the fact that the primary residence changed in mid-year does not result in "adding up the loan numbers" OR is IRS considering that i actually have indebtedness of 350+650 = 1M and therefore, I am above the 750K limitation?
Thank you!
