This is a long-standing issue with Turbo Tax. One that I have tried numerous times to notify Turbo Tax about. I have described the problem over and over again to Turbo Tax tax experts, CPAs and even the Turbo Tax Community (last year). When I do explain the issue well enough, they agree there is an issue and tell me they will report it but nothing happens and no way to follow up with the same person. I have to start over again. If I am wrong about, I would appreciate an explanation why. With that said, here goes...
Turbo Tax does not divide the average of the acquisition portion of my mixed-use mortgage balance by the average total mortgage balance to figure the percentage of my total interest that I can deduct on schedule A. This is required for mixed-use mortgages and/or when the mortgages are limited to $750,00 / $1,000,000. Instead, Turbo Tax divides the year-end acquisition debt by the year-end total debt. In addition, Turbo Tax does not round the percentage to three decimal places as required by Pub 936.
