@RaifH I have a similar issue. Can you help. Here is the situation:
Purchased a home for $470k in 2016. Balance as of 12/31/2022 per 1098T- 309K.
Purchased a second home for $903k in 6/29/2022. Balance as of 12/31/2022 per 1098T-896K
When I enter 1098Ts then I need to limit the interest deduction because since 6/29/2022, I have been over 750K cap.
The system calculates the average of both mortgages by adding the beginning and ending balances of both mortgages, then it divides it by 2 , and then it applies the limitation percentage which results in me being able to deduct only about 60% of interest from both homes. That makes no sense. I was only over the limit since 6/29/2022, so this makes no sense.
Can I calculate the average balance of the 903K loan by adding 7 months mortgage balances then dividing by 12? It would be around $525K. And if I enter that, then the system allows about 90% of interest deductions for both loans. Does that seem accurate?
