Need recommendation for best way to proceed with entering data for the following hypothetical situation (numbers are hypothetical for example only):
Have a $400,000 refinanced mortgage on primary residence. $300,000 was cash out and used to purchase a condominium rental property beginning April. Prior to April there was a $100,000 primary property mortgage loan that was retired and refinanced/increased with the $400,000 mortgage loan.
Consequently, have interest expenses of $500 on primary property until April; $5,000 interest to be applied to rental property after the April purchase; and $3,000 interest after April to be applied to primary residence.
Where, how, and in what order do I enter this info?
Do I start with the rental property discussion, which feeds to Sched E or do I start with the itemized expenses feeding to Sched A?
