I am in a similar situation, but I always traced interest from my primary residence HELOC to my rental property. My HELOC was used for purchasing my rental and to make improvements over the years. When my draw period was over, the balance and interest traced to the rental was 64% and has been the amount I have easily put in my Schedule E. Now with the new tax law, it seems to be more difficult to trace HELOC interest to the rental as a business expense.
Is there a form I need to use to make this trace again or did I lose that ability with the HELOC because it is not a conventional mortgage?
Thanks, Norm
