@AmeliesUncle Do you mind if I ask an add-on question?
Our situation is nearly identical to @CandP507's, the only difference is that we opened a HELOC on the existing home to pay for part of the ADU's (rental) construction costs. All funds from the HELOC went to the ADU construction, we didn't use it on anything else.
We received 2 1098s from our bank, one for the old mortgage and one for the HELOC.
Should we enter the Interest paid on the HELOC (as seen on the 2nd 1098) as an expense for the ADU (rental)?
Thank you!
