I bought my old place in 2017 and the average loan balance of that place is 454k in 2018, I moved out on July 31, 2018, and converted to a rental starting Aug.1 2017. I am claiming 42.5% rental and 57.5% personal use and split the expense that way. (The loan on that place origination in early 2017)
I bought my new place in 2018 and moved in on Aug.1, the loan for the new place is about 580k .
I know that loan starts before Dec.15 2017 has 1M limit and after that, it has 750K limit.
My question would be :
1. Can I calculate the eligible mortgage deduction amount based on the interest part of my personal use as 454k * 57.5%(personal use percentage for the old place ) + 580k (new place) = around 842k?
2. For this amount, should I use the 750k rule or 1M rule?
Thank you all for your input!
