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Level 2
posted Feb 8, 2020 7:18:07 PM

I have 2 mortgages, one originating in 2013 and one originating in 2019

The 2013 mortgage is on my primary home and the 2019 mortgage is on a construction loan to build my new home. I would like to know which limit ($1M or $ 750K) I need to work with for my 2019 taxes. The 2013 mortgage is for $437K and the 2019 construction loan (closed on Sept. 27) is for $1.9M.   How do I calculate the correct interest deduction?

0 2 394
2 Replies
Level 15
Feb 8, 2020 7:40:32 PM

look at page 12 (line 1 is zero) ; the 2013 loan goes on line 2 and the new mortgage will go on line 7 

 

easy 

 

https://www.irs.gov/pub/irs-pdf/p936.pdf

Level 2
Feb 8, 2020 9:50:40 PM

Thank you.  Because my closing for the 2019 mortgage happened in late Sept., I calculated the avg. monthly balance looking at each month's average vice (year start+year end)/2.