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Deductions & credits
Yes, you don't have to have the mortgage for the entire year to use the interest rate method. Your Outstanding Mortgage Principal on the first will be much lower than what is reported since you only paid interest for one month.
You still may have your mortgage interest deduction reduced depending on how long you held the second mortgage and how much above $750,000 it was.
‎February 21, 2022
5:38 AM