mm2023taxes
Returning Member

Deductions & credits

How does this process change if there are overlaps in the two loans?

For example, my original mortgage form Home 1 was from 2016 for $250K.  As of 1/1/2022, the loan balance was $175K.  Home 1 was sold on 8/15/2022, with the final loan balance of $165K at closing.

 

I bought Home 2 on 5/15/2022 with a mortgage amount of $770K.  The loan balance for Home 2 on 12/31/2022 was $760K.

 

So there are 3 months of overlap with the two mortgages, but neither was in place for the full year so the default calculation in TT feels too punitive.

 

Can I still use the same process as the above response when the loans did not overlap or are there are additional steps/calculations that have to be followed in this situation?