Thanks for the reply, Kris!
I received a single 1098 which said the end-of-year principle balance was $382k. The actual year-end balance was $762k. When entering the data from the 1098 into TT, I used the $382k number from the 1098 for the year end balance but this seems to be limiting the amount of the mortgage interest I can use as a deduction for the year.
The starting principle balance for the loan was $765k. It was the same loan all year in that I only did one closing and there was no new documentation when the construction was complete and the loan switched from being a construction loan to a regular mortgage.
I'm not sure why the bank said the year end principle balance was only $382k. The only thing I can think of is that maybe they took the average of the balance over the course of the year and because it was a construction loan on Jan 1, it considered the principle balance at that time to be $0? In case it is significant, I was paying interest only during the construction period.
If it is valid to use one of these other means to represent the year-end value for the loan, it may be beneficial for me to do that. Even if the limit I was using was $750k, I'd think that would enable me to deduct more of the interest than if I'm using the $382k that the bank said it was.
