We converted our primary residence to a rental in July of 2022 and moved into a new home we bought with a mortgage over $750,000. I believe I've prorated everything correctly in TurboTax between personal deductions and rental expenses but the mortgage interest is giving me trouble.
The "Deductible Home Mortgage Interest Worksheet" is showing the loan for the house we converted from primary residence to rental and the new home and is adding the averages for the full year of the mortgages together and using that to calculate the percentage of the home mortgage interest that we should deduct. Really what we want is deduct all mortgage interest on loan 1 until we moved out of it (as it was under $750,000) and deduct a discounted amount of the mortgage interest we paid on the new house since we moved into it (the discount being $750,000/$880,000 * the mortgage interest paid). I know the number, and have adjusted it to the right number when TurboTax asked, but do I need to worry about the Worksheet showing the wrong numbers?
Last question (Sorry for the book): I believe I also need to discount the points on the mortgage on the new home since the mortgage is over the $750,000 mark and points are really just prepaid interest. Is that correct?
