Super helpful @Mike9241. Follow up: I converted that 2nd residence to a rental partway through 2022. So most of the mortgage interest is an expense on Schedule E (75% of it). For the period of time where I was living there before it was converted to a rental (25% of the year), I should include that mortgage interest as a deduction on Schedule A, right (per your example)?
If I do need to include that 25% of mortgage interest on Schedule A, would I enter 25% of the mortgage interest *and* 25% of the outstanding mortgage principal?
And you're also saying that I could choose not to enter that 2nd residence on Schedule A, but then I am forfeiting the option to ever deduct mortgage interest on that 2nd residence in subsequent years?
