Thank you for your response. When using a excel spreadsheet and calculating average balance for all loans I only get 592K. It seems the IRS rules as your stating them, are designed to reduce my deduction, rather than be accurate? I feel sorry for people with adjustable mortgages too, as they want you to use the lowest rate for averaging rather than using and adjusting the rates for each month.
These publications need more examples and clarification as I did not interpret this statement the same way you did as my short loan was secured at all times and was paid monthly until it was paid off. They should be clear if it is a requirement the loan be for the entire year and no partial years are allowed to be calculated?
Interest paid divided by interest rate method. You can use this method if at all times in 2023 the mortgage was secured by your qualified home and the interest was paid at least monthly.
Thank you for your help, I appreciate it!
