In DC visiting son. He bought a home in 2015 with a mort of $575,000. Sold it this September and bought a ew one with a mortgage of $1,000,000.
Trying to understand the interest limitation of $750,000. it seems to us he should be limited to 75% [750,000 div 1,000,000] for the last 3 months with the new mortgage. It also seems to us the first 9 months should be fully deductible because he bought it when the likit was $1,000,000 and the mort was only 575,000.
Tirbo tax seem to want to combine the amounts.
thoughts
Trying to understand the interest limitation of $750,000. it seems to us he should be limited to 75% [750,000 div 1,000,000] for the last 3 months with the new mortgage. It also seems to us the first 9 months should be fully deductible because he bought it when the likit was $1,000,000 and the mort was only 575,000.
Tirbo tax seem to want to combine the amounts.
thoughts
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