We moved this year from one home to another. The first home has an active mortgage originated prior to 2017 and hasn't yet been sold. The new home is financed with a new (much larger) mortgage starting September 2021. It seems that TT uses the Average of first and last balance method to calculate the Average Mortgage Balance. This results in a big reduction of my deductions as if I am being penalized for having taken out a new mortgage.
However, given that my new mortgage is only part-year, the Interest paid divided by Interest rate method is more appropriate, which would appropriately calculate my deductions as the law intends. I have gone through this on the Mortgage Interest Deduction Worksheet in Pub 936.
My question is how can I override TT to do this calculation correctly? None of the TT steps/questions seem to allow this. I can't just omit a 1098 form and "decide not to take a deduction" right? I know there are lots of posts about having two mortgages from different limitation timeframes, but none of the answers seem to address this particular question of how to deal with it in the TT? Please correct me if I am wrong! Thank you!
