Fun one yes. The good news is I believe the interest can be deducted as an annual expense that can offset your rental revenue. The part that gets tricky is that I believe that rental revenue and expenses need to be detail on I believe form E. I am putting my rental in an LLC, which I believe will go through the same form. With that said, I did some digging and because this is a small business, I will need to download and use the Turbo tax home and business to run the business portion of my taxes. I don't know your situation, but that might be why you are not seeing what you are looking for. Full disclosure, I have not yet gone through a tax season with the LLC in play with a business going through it, so this information is based on my googling.
