I bought a new home last year in March at interest rate of 6.25 on initial balance of $879000. I sold my old home in June, that had a balance of around $300000. In addition, I made additional principal payments to new home (from income derived from selling first home).
How do I figure out mortage interest and average mortage balance? I am confused about IRS language about this.
If I use average monthly balance for each mortage, do I use 0 for months I did not have a balance? Meaning 0 for July- Dec for first home and 0 for Jan-Feb for second home? If I do this, the balance falls below ~750k.
Mortage interest deduction for multiple homes
byu/PuzzleheadedClue8902 intax
Posted by PuzzleheadedClue8902
1 Comment
What was the ending balance of the first loan? Most larger firms go with beginning balance of loans as of 1-1 and then ending balance as of 12/31. So beginning being ~300k and ending being x , take those two divide by two to see if it’s over 750k. Sounds likes it’s not so just take it all