Thank you very much for the reply and insight. Are you claiming the Condo Mortgage in its entirety since it was owned all year versus the new primary home for only 3 months?
I am curious how you would calculate next year 2024 taxes, given similar inputs, for the debt-by-debt approach - would the primary home be the new emphasis on this methodology?
Primary Residence - $725k average balance, $4,155 average monthly interest x 12 = total interest of $49,860
Second Home - $458k average balance, $1,004 average monthly interest x 12 = total interest of $12,048
I think I understand publication 936 and it's approach - $750K/$1.183M = 63.3% of ($49,860 + $12,048) = $39,183 in deductible interest for 2024. This is lower than the interest paid on my primary residence alone.
Is it possible to omit the second home 1098 and associated interest, and only claim the 1098 interest on my primary residence? This would result in a higher deductible amount for 2024 than publication 936. Or is there any other reasonable method that wouldn't result in the second home bringing down the deductible amount?
Thank you!
