Thanks, but the question was whether ALL of the interest is deductible on Schedule E in following years if some of the loan proceeds were used for personal uses. The IRS has clear guidance for the case where you refinance a rental property and use the proceeds for personal use, but is mute on the case where you refinance a primary residence, use some of the proceeds for personal use, and then later convert that property to a rental.
I'm guessing that is because the tax court has not encountered that situation yet and thus there is no guidance.
