Hello,
I currently have 2 mortgage loans, one for my primary residence and one for my rental property. I am planning on refinancing my primary mortgage (aprox 400k) and taking an additional cashout (aprox 200k) to pay off the loan on my rental property. My question is will I still be able to deduct interest related to the 200k cashout on Schedule E as a rental property expense? I will still have the same total loan balance, just consolidated with a lower rate.
I appreciate any advice.
Thanks!
