TurboTax isn’t letting me deduct the interest on the 2 primary residences I owned in 2020, seemingly because the total of the balances is over $750,000. I never owned both homes at the same time, I simply sold one abs bought another. I have 3 1098’s for 2020. One, the 1st lean on a primary home I sold in October. Interest was about $22,000 in box 1, then box 2 showing the outstanding balance of 443,713.38 with origination date of 4/30/2018. Second, the 2nd lean on the same property I sold in October with interest of about $4000, and an outstanding balance of $90,000. Finally the 3rd 1098 is for the new purchase. Interest is about $2600, and box 2 reads $510,000 of an outstanding balance abs this home was purchase right after the sale of the other. My question is, shouldn’t I be able to deduct all of this interest since neither home had a mortgage of over 750k? Or should any of the outstanding balances in box 2 say 0? To reflect that one was paid off or that the other didn’t start the year with a balance. I spoke with 2 CPA’s with turbo tax but neither seems to have a definitive answer and recommended posting this here. Help with a certain answer rather than a guess would be appreciated.
