Question
Sold home in 8/19 with loan under $1M limit issued in '05. Bought home in 6/19 and new loan exceeds $750k limit. How do I calculate mortgage interest deduction?
TurboTax isn't auto-calculating for me. It simply shows me total interest and points paid and then has a field for me to enter the allowable amount subject to deduction limitations. I've consulted the table in Publication 936, but am unclear on how to calculate the average mortgage balance for the loans given that I held each loan for less than a year.
1) The first loan was paid off in fully in August when the home was sold and the loan balance was under the $1M limit (loan was originally issued in 2005).
2) The new loan started in June when we bought our new home and the loan value exceeded the $750k limit.
Are points paid on the new loan also subject to the $750k limit?
1) The first loan was paid off in fully in August when the home was sold and the loan balance was under the $1M limit (loan was originally issued in 2005).
2) The new loan started in June when we bought our new home and the loan value exceeded the $750k limit.
Are points paid on the new loan also subject to the $750k limit?
