Thanks for your response. That makes sense as it's consistent with the tracing rules. But are you sure that reporting the interest on the 1098 from property A on the schedule E for properties B and C instead won't cause confusion/questions at the IRS? In the end it's the same amount of interest as shown on the 1098 but it does not match the property address on the 1098 (and it is split between 2 other properties).
