Hello, the IRS limit for mortgage after 2017 Dec is 750K.
I purhcased a house on 2024 December with a loan of $1,470,000, and paid ~5k in interest. The loan stays the same at the end of 2024. How should I calcuate the average mortgage balance? Is it
1). ($1,470,000 + $1,470,000) / 2 OR
2). (0 + $1,470,000) / 2 OR
3). $1,470,000 / 12 ?
Meanwhile, I also own another house for a full year 2024, and the average mortgage balance is $450,000 ((year begin balance + year end balance) / 2).
Apparently, it seems if I report the first house's mortgage with the average mortgage balance calculated with method or 2 above, the actual amount if interest I can deduct is less than skipping the new house's loan.
My questions:
1. Which method is correct for the average mortgage balance calculation?
2). Is it legal/permitted for me to skip the new house's loan?
Thank you!
