Mortgage Interest deduction with home sale and purchase

[Rajen]

I'm a bit confused by my two 1098 forms. I sold a home in June 2019 and purchased a home with the same closing date.

The 1098 forms both list outstanding mortgage principal, which makes my total outstanding loan balance over $1M, resulting in not being able to deduct Mortgage Interest. However, I didn't have both mortgages at the same time, and neither of the two mortgages exceeds $750k on their own.

Is it possible for me to deduct Mortgage Interest? If I enter everything as shown on the 1098s, TurboTax does not show allowed deductions.

[AlexanderS08]

You would use the balance from the mortgage on the new house. The question is asking with respect to 12/31/2019 so only the balance on the new house is relevant on that date.

You can still use the interest from January through June from that 1098 for the old house, but for purposes of the mortgage balance (which determines eligibility to deduct interest) you would look at the 1098 for the new house.