I am responding to CP28 notice regarding my 2024 Federal Tax Return. I have two qualified homes:
Property A(purchased December 2020) and Property B(purchased March 19, 2024). My total mortgage interest paid was $40,470, but because my combined mortgage debt exceeded $750,000, I am recalculating my deductible interest using the Average Balance Method from IRS Publication 936. I am seeking clarification on whether the average balance for Property B should be pro-rated for the partial year of ownership (starting March 19) to ensure my final deduction is accurate
Can some one help me validate my average balance calculations in the image attached?
Posted by Ok-Seaworthiness8619