I have bought a second house in 2021, and I lived in my primary house for 9 months and in my secondary house for 3 months in 2021.
My primary loan is less than the $750000 cap, and its total mortgage interest through 2021 is less than $25000, so all the mortgage interest of my primary house is considered tax deductible on turbotax home and business 2021.
When I input my secondary mortgage, the overall loan amount is up to $2000000, which is way more than $750000, then my overall mortgage interest is less than the tax deductible from only counting primary. It turns out how turbotax calculates the mortgage interest deduction is
deduction = (750000/total loan amount)*25000
Is this the correct way or it is a bug in turbotax.
