@Intuitjhaze Just to make it clear, I know the "in theory" and correct answer is for this question, and I believe most of the practitioners know the correct answer. My main question is how to get the software to produce the answer.

I phrased the question this way is to have people compare their "should be" answer with their "software" answer themselves. However, I can simplify the question as:

The correct answer for federal is:

Full $30k mortgage interest on the $650k - primary residence +
Interest of $100k/$350k * $20k for deductible interest on the second home

all $50k mortgage interest would be allowed for California

How do I get the software to get the correct answer? I did try the "Excess Mortgage Interest" input, which does not provide the correct answer.