Looking at how I handled this historically:
- 2019: The worksheet was less explicit about when the actual mortgage originated, so I took the $1M limit
- 2020: I hired an accountant who only took the $750k limit. It was COVID.
- 2021: I took the $1M limit with Turbotax by morally rationalizing that I did the $450k remodel
- 2022: I had a huge refund coming, got lazy, only did $750k. Felt pretty guilty about it. Promised myself I would figure out how to do it correctly this year.
