Taxpayer refinanced his main home and used the cash out as down payment for a rental property. Does he claim the mortgage interest deduction on Schedule A or Schedule E?
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The loan is secured
by his main home, he claims the interest on schedule A. -
Or you can make the election to treat home mortgage interest as not secured by home and take the interst on Schedule E. The Election cannot be revoked without IRS consent.Comment
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...and remember the 100.000 limit for deductible equity interest.Comment
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Also
See Pub 936, it will become your best friend in calculating the deductible Mortgage Interest on a refinance.
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