I purchased a second second home in March of 2024. According to IRS pub 936, page 4, second column, only one second home can be claimed at a time. The reg indicates on the same page that I can change the home designation during the year which I interpret as designating the new home as my now second home. I am trying to enter the 1098 for both homes in TurboTax Premier and have the interest for the original second home be deducted for Jan-Mar, and the interest on the new second home be deducted for Apr-Dec. Neither home individually is over the loan limit of $750K and I do not have a mortgage on my primary home. Turbotax is trying to calculate a loan average and adjust the deduction interest using a ratio. The only viable option I can see is to enter one 1098 with a lower interest amount than actually reported to the IRS and make a supporting detail note as to the reason for the reduction. Yet, I still cannot get Turbotax to stop trying to calculated a ratio for allowable interest. I can override amounts but I have a concern about the causing an IRS audit. It would be ideal for TurboTax to support designating a time period for using the interest deduction on a second home. I do consider it a BUG that Turbotax is not complaining about having multiple 1098's entered with the second home designation.
