@NCperson wrote:
1) can you please provide the specific paragraph and sentence of publication 936 that supports tracing when secured debt on residential real estate is involved?
https://www.irs.gov/publications/p936#en_US_2018_publink1000229982
Mortgage proceeds used for business or investment.
If your home mortgage interest deduction is limited under the rules explained in Part II, but all or part of the mortgage proceeds were used for business, investment, or other deductible activities, see Table 2 near the end of this publication. It shows where to deduct the part of your excess interest that is for those activities.
