Hello! I am wondering what you ended up doing in this situation? I currently have the same problem and I'm trying to figure out the "right" way to handle it.
I converted my primary residence into a rental and purchased another home as my new primary residence, so I have two 1098's to enter on schedule A. The total outstanding mortgage principal balances between the two properties exceeds the 750k limit. I am wondering for my schedule A, do I adjust the outstanding mortgage principal balance for the property turned rental by the % it was used for personal use?
