If I took a cash out refinance specifically on my primary residence home and used it to buy rental property outright, would the mortgage interest each year be attributable to: (1) 100% as primary home on Schedule A; (2) 100% as rental property expense on Sched E; or (3) split between both sched A & E based on the % of the refi mortgage that went to rental property and % went to the remainder pay off on the previous loan balance? Greatly appreciate any insight and welcome guidance to the pub/source.
