I note your numbers are different that the $1M you originally stated. So your secured loan amount is $1.2M
I start paying off 300K only after the 900K is paid off in entirety. Is that right?
If that were so, then you would not be able to claim "any" of the interest on SCH E until you paid off the 900K.
Your percentage allocated to the rental will change yearly, based on the outstanding balance and amount of interest paid. The math used by the IRS is a bit complex to me and I don't fully "get it" myself.
