Thank you for the detailed reply. Very useful.
In real world scenario, i would assume folks have different asset classes and channelize funds based on available oppurtunities.
Also, this complexity will arise any time you refinance your previous loan, due to favorable interest rate. I would assume complexity of multiple channel of investments would be categorized into %, similar to what we are doing currently.
Again, I am no CPA, and I would like to find a CPA who can handle real world complex transactions, and for that to happen, i need to understand what is possible, and then i can explain to CPA, if they have done this before, and if they forsee any issues.
I am sure someone must have figured this out already, since this seems to be a like a genuine case, where you get funds for investments, and you have waiting period, until you jump upon a better oppurtunity. Also, you make profit after 1-2 years, and discover another oppurtunity. Also, categories of investments may be different and allocated differently.
If current IRS rules, doesn't allow this complexity at all, I would assume then entire interest deduction is lost?
