Avg Balance using Interest Paid/Interest Rate 1 = $66867 (sold March 2022; primary home)
Avg Balance using IP/IR 2 = $150073 (purchased August 2005; secondary home)
Avg Balance using IP/IR 3 = $349664 (purchased April 2022; primary home)
IRS 936:
Line 1 =$0
Lines 2, 5, 6 = $150,073
Line 7 = $416,531
Lines 10, 11, 12 = $566,604
Per the form, Line 11 = Line 12 therefore all interest on mortgages included in Line 12 deductible on Schedule A.
TT says it uses Average First/Last Balance method so "create placeholder 1098 with $1 outstanding balance in box 2 and all mortgage interest in box 1".
For "placeholder 1098", how do i answer: lender name, mortgage origination date, loan balance as of 01/01/2023, and when purchased property?? Also, do i include individual 1098s or just the one "placeholder 1098" by itself?
Thank you!
