I sold my 1st house in 2022 (purchased in 2019 which had loan balance of $361K at payoff. I then purchased a new home with mortgage of $600K. TT is calculating the debt for the purpose of interest deduction in excess of the $750K max allowed (ave. balance of 1st home loan & 100% of new loan-not ave.). It seems incorrect to have TT the amount exceeding $750K when the max. outstanding at any one time being $600K (below the limit). Does anyone have a suggestion as to how to show this in order to receive the full mortgage interest deduction this year?
Thanks
