Mortgage A (principal over $750K) was sold and became Mortgage B in February. In October I refinanced Mortgage B to Mortgage C and paid down the principal to be under $750K. Using TurboTax it will only calculate my average balance on Mortgage C which was under $750K and ignores the balances from A and B. Based on the worksheet and IRS Pub 936 you need to include all home acquisition debt and that makes the calculation on TurboTax wrong. What am I missing?
