Thanks @Carl .
Yes this is what I figured I would have to do as well. This is super clear to me. Thank you.
One quick follow-up. For the Schedule A itemized deduction, once I add the remaining interest portion I end up getting limited by the mortgage interest rules.... "You can deduct the mortgage interest you paid on up to $750,000 in loans for your first or second home".
What mortgage balance should I use when I calculate the average for the mortgage of the rental home. I am pretty sure I will be under the $750,000 across my homes if the average mortgage balance for this rental home will also factor in the fractional number of days of it being a primary residence, but I want to make sure I do that math properly as well and enter the right remaining mortgage principal balance in the schedule A portion.
