Thank you for the references. From the references, for the investment land it is clear that I can retain the investment expense characterization of the interest on the investment cash. The aspect of passive activity from my rental properties seems to imply that I cannot use the investment cash to pay the mortgage principal and retain the investment expense characterization of the interest on the investment cash. The treatment of passive activity income seems to change how the loan payments are characterized, but I suspect I'm not understanding things.
Does making the payments of principal using investment cash on my rental properties retain the investment expense characterization of the interest on the investment cash?
Thank you, again, for your help in the understanding of this issue.
