Thanks for the response! I guess i was not clear in my question. I will try to walk through the scenario. My primary home had an original loan amount of 100k. I did a cash out refinance to 900k in feb 2018, when the house was still my primary home. But during june 2018 i bought a new primary home and converted the first home as rental. I did not do any refinance after i converted to rental. Can i claim the interest paid on 900k loan from june thru december as the expense? Or am i limited to only the interest paid for the original loan amount of 100k? Since at the time of conversion to rental, i had a loan of 900k ( inspite of cashout refi from100k when it was a primary home), i am assuming that i can count all of interest on 900k ( june thru dec) as expense on rental and claim loss. Please let me know.
