I am having the same problem as other people. One mortgage was paid off in May and the other started in July. Turbo tax is adding to two separate mortgage average balances together and that is making a huge disallowance of the mortgage interest. Mortgage #1 has an average of $1,075,000 and interest of 18,000 paid off May 2021. Mortgage #2 started July 2021 and has an average of $1,195,000 and interest of $12,500 . Turbo tax is saying the average is $2,270,000 and the interest allowed is $10,077 750,000/2,270,000 = 33.04% X $30,500. If I put a zero in the payoff of mortgage #1 as suggested above it makes the first mortgage at half $537,500 and then adds that to the second average mortgage of $1,195,000 again giving a total average that is bigger than either mortgage ever was from the beginning.
