Thank you. This is what another response was and their answer.
I know this is a shot in the dark, but when you mention "tracing" I can show that the refinance money paid off the rental mortgage. The reason is, is because I refinanced with the same Mortgage Company that I had the rental Mortgage with. I did not receive any money from the refinance. Basically, I refinanced my home with NewRez and NewRez paid off the rental loan, which I said was financed through NewRez. I refinanced my primary residence to pay off the higher interest rental loan. I'm not sure if this makes a difference or not.
Here's the bottom line. The percentage of interest of the equal percentage of cash out money from the refinance of your primary residence that was used to pay off the mortgage on the rental property is just flat out not deductible anywhere on your federal return. Period.
