Turbo Tax will sum the average balance of your mortgages and limit your deduction if the sum exceeds the $750K limit. However, Turbo Tax will allow you to enter a different amount of deductible interest directly without editing worksheets in the program (at least you could last year with the desktop version), which is often necessary when you sell and buy a new home in the same year. You do have to figure the amount to deduct yourself and there are different approaches you can take to get you the highest deduction amount. Please provide the months held, approximate average balance, and interest paid for each mortgage so that I or a tax expert may help you decide which way to go.
