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I am not sure how to account for the fact that the 2022 903k mortgage was outstanding for 7 months only. The software does not take that into the calculation. It still calculates as average balance 899k (borrowed 903K, principal paid 6406, ending balance 896K)
I was reading the Proseries instructions and it says:
"Enter the beginning of year balance on up to five qualified loans and any additional amounts borrowed during the current tax year. The program will determine the average home acquisition loan balance and interest allocated to that loan based upon your entries."
But, It does not account for the fact that the loan was outstanding for only 7 months for 2022 even though I entered that info in part 1 on the deductible home mortgage interest worksheet. It still totals both loans balances to 1.2M and then applies the limitation percentage. So what am I missing?