Thanks, this Q&A was very helpful and I basically refi'd last year following this scenario but the details are hanging me up. The total loan was almost 10k more than the prior loan payoff costs of the 2 properties because of all the closing costs that got rolled into the loan, so do i split the closing costs between the 2 properties or lump it in with the HAD (primary)? Using the $300k HAD and HELOC examples referenced in the original post, my total new loan would be $610,000 not $600k. So does the HAD deduction become $310k * interest rate until the HELOC portion ($300k, initially) is paid off or do you split closing costs proportionally as if you owe $305k on HAD (primary) and $305k on the HELOC (rental).
Can Turbotax help with the HELOC interest calculation?
