Thanks, this is very helpful!
Just to confirm on one question: How should I treat the non-points costs of the original mortgage, that I took out before I converted the property? Should I amortize them over the life of the loan, treating the amortization as a non-deductible cost while I lived in the home, but then deducting it after I convert the home to a rental? And if I amortize it after the property was converted to rental, should I then deduct the remaining unamortized part as an expense in the year when I refinanced?
I'm having trouble wrapping my head around the last part. Since I "used" the loan partly for personal use (my own home) and later for business use (home converted to rental), do all these costs become a business expense when I pay off the mortgage? Or should I prorate it based on how long the loan was for personal vs. business use?
