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Deductions & credits
Hi @RaifH - thanks for tagging me and providing this answer. Can you help w/ this hypothetical situation?
Lets say that I purchased a home on June 30 (800k loan - Home #2) and sold my existing home on 4 August (500k loan- Home #1). Without getting into details, both of these homes qualify for interest deduction.
Is it acceptable to calculate my 'June' field for Home #2 as 800000 * (1/30) = 26.6k? I.e my June would be 16.6k, but July-Dec would be 800k.
Similarly for Home #1 - My August field would be 800k * (4/30) = 106.6k; and Jan-July would be 500k; since I only owned Home #1 for 4 days in August.
I ask this because If i include the full value for those two months, I'm slightly over 750k limit, but if I use 'partial month values', then I'm well under 750k limit. THanks for your help!