what was the original mortgage balance when you purchased the home?
On what date did you purchase the home?
Did you pay off that original mortgage and replace it with the Home Equity loan? was the balance of that original mortgage at least $786,000?
The Mortgage 'acquisition date' goes back to the original mortgage as that is how TT determines if you are covered by the pre Dec 2017 $1mm limit or the post Dec 2017 $750,000 limit. That date should be consistent on each mortgage.
The mortgage 'origination date' is the date you closed THAT mortgage.
<< *** UPDATE *** I checked the Home Mortgage Interest Worksheet -- For Mortgage 2 it is considering the mortgage as "Post-12/15/17".>>
this is the bug I THINK I uncovered.....the problem is as soon as you tell TT that the mortgage origination closed after 12/15/17, it moves everything to the $750,000 rule. Go ahead and test it by changing the date to 12/14/17 and then to 12/16/17
My best bet is to use an origination date prior to 12/15/17 so that this works correctly
this is from IRS Publication 936, page 10 on the left side:
Refinanced home acquisition debt. Any secured debt you use to refinance home acquisition debt is treated as home acquisition debt. However, the new debt will qualify as home acquisition debt only up to the amount of the balance of the old mortgage principal just before the refinancing. Any additional debt not used to
buy, build, or substantially improve a qualified home isn't home acquisition debt.
