@Mac1287 wrote:
Thank you both @JillS56 and @Opus 17 . I really appreciate the help.
In the scenario where we do purchase a Property C, D, or E, I understand that the mortgage interest incurred for that portion of the debt would be deductible as long as I calculate the correct percentage (substituting the cash value that was actually used in the equation I provided in the other thread) and include them in the correct rental property columns in Schedule E Form 1040, correct?
If you purchase property C with the leftover cash, part of the interest on the loan would be deductible against property C's income if you can reliably trace it. You can use the same percentage method I described in my other answer. Essentially, 33% of the interest would be applicable to property C as of now, with a declining percentage as the loan balance is paid down.
