Thanks for the reply. Everything you said makes sense. I assume that when you say "summing the end balances each month and dividing by the total # of months" that this is within the tax year only and not the origination date of the construction loan. For example, I start at 1/1/2024 and end at 12/31/2024 for a total value and divide by 12. If I do this, I essentially get roughly $867K average balance.
Given that the construction loan originated in 2022, and it essentially zeroed out the previous mortgage of my primary home, bought prior to 2017, I would expect my limit for interest deduction to be $1M instead of the $750K? So how does Turbo tax even know this information if I didn't provide that to them to determine this?
