I have a client who sold their residence and paid off that mortgage which was under $750,000.  They purchased a new residence with a mortgage of $1,230,000.  Reading directions on figuring the home mortgage deduction limitation, I understood the instructions to say to enter each mortgage they had on all qualified homes.  In this situation, I assume it to mean both mortgages, the old residence and the new residence.  When researching in the community discussions, one question similar to my own, was answered by saying to enter the mortgage interest from the home sold (with mtg under $750,000) directly on Schedule A and to use the home mortgage deduction limitation worksheet to figure the interest deduction for the mortgage on the new house (with mtg over $750,000).  I can't find any articles clearly stating this, either way.