@TomD8- I do beleive @Opus 17 is correct, but I think there is confusion in the scenarios.
If the loan is taken out against home A (which is the personal residence) to use as a down payment against investment property B, then that interest can only be deducted on Schedule E. It can never be deducted on schedule A (even if investment property B was sold) because the money that was borrowed against Property A was not aquisition debt nor was it used to extend the life of Property A. I believe that is the scenario in this thread.
I think the article you provided is a different scenario. in that scenario, the loan is against investment property B. So if the owner ceases renting it and moves into the property (or uses it as a 2nd home), the interest related to the aquisition debt can now be deducted on Schedule A.
At least that as how I see it.
