Thanks for replying. I file as single, so have the lower standard deduction, which I exceed each year. Unless I've misunderstood, I will get the mortgage interest deduction whether I take it as an itemized deduction on Schedule A or a reduction of income on Schedule E. My rental situation is perhaps unique in that all the expenses (if I include half of real estate taxes and half of mortgage interest) exceed the rental income. In which case, I may prefer to take the full mortgage interest deduction on Schedule A. But only if that's allowed of course.
