First I want to express my appreciation of your thoughts on this matter. It is hard to find a knowledgeable person in this specific area.
I think what you said in your last post makes sense.
Now that I understand what should be done, I am now struggling in turbotax to do it correctly.
Turbotax doesnt have the forms in IRS pub 936. Instead, it has a home mortgage interest worksheet and within that, it has a home mortgage limitation smart worksheet that comes up with numbers without explaining what calculations it uses. I cannot find in pub 936 a copy of this worksheet. How it calculates the home acquisition interest = total interest paid x (acquisition debt/ending principle balance). (Figured it out by trial and error).
This is NOT one of the accepted ways listed in pub 936, as pub 936 keeps discussing using average balance, not end of year balance. Is this worksheet in turbotax simply wrong?
