Schedule E – Rental Property Mortgage Interest. Can I put Mortgage Interest from a loan secured by my primary home on a Sched E for a different (rental) property, if the purpose of the loan was to buy the rental property?
January, 2015 – Purchase of Vacation Rental Property (Property B). Borrowed $162,000 on a Chase HELOC, secured by my primary residence (Property A) for this purpose. There was no other mortgage on the residence – Property A – at the time.
April, 2015 – We replaced the Chase HELOC with a primary mortgage on our home – property A - borrowing $162,000. That mortgage was quickly transferred by the bank to Wells Fargo.
2015-16-17 – Used the Mortgage Interest Deduction in its entirety on our Sched A, and did not include any interest deduction on the Sched E for the rental property. 2018 - IRS changed mortgage interest rules.
Can I now apply that mortgage interest to my Rental Property – Property B - Sched E for 2020, since the intent of the loan was to pay for the rental property?
