This suggestion might lead to incorrect CA 540 calculation. Here's my analysis and a potential fix. Lender transferred my loan in the middle of 2018 and two 1098s were received from different lenders. I followed the instruction here by using the middle year number for the 2nd 1098 box 2, and the "CA 540 Deductible Home Mortgage Interest Worksheet" was reporting "2 Average balance of all home acquisition debt" to be well over 1M, by averaging over the sum of all 1/1/2018 loan balance and ending balance. That led to reduced interest deduction in my case. The correct way seemed to be entering 0 in the 2nd 1098 box 2. I hope someone from TurboTax can confirm the issue and the solution.
