I refinanced my personal home and took out cash to purchase a rental property. Where and how do I report the mortgage interest for each property?

[buckstr-family]

I'm assuming I will have to create an amortization schedule for the rental property's portion to have my numbers to enter.

[Critter]

None of the mortgage interest belongs to the rental ... you took a mortgage on your personal residence ( the reason is immaterial) so the interest belongs on ONLY the Sch A.

[buckstr-family]

I was doing some research on this and it looks like I can only deduct what I used to pay of my primary home mortgage balance and any capital improvements to my primary home.  The cash out to purchase the rental I can't deduct.  

So  with this said, I need to figure out what I've used for my primary home capital improvements to deduct each year going forward.   Or am I wrong and I can write off the whole mortgage interested on this refinanced amount on my Schedule A each year going forward? 

[fanfare]

you cannot "deduct what you used" you can only deduct interest paid and that only if qualified.

Improvements to your home increase your cost basis.

[Carl]

You can only deduct interest on the amount you owed before the refinance . Example:

Original mortgage taken out in 2010 was for $80,000.

In 2019 you owed $60,000 on the property and refinanced for $100,000 with a " cash out" of $40,000.

You can only deduct interest on the first $60,000 of the refi. Since the $40K you cashed out was not used to maintain or improve the home refinanced, the interest on that is not deductible. Therefore only 60% of the interest reported on the 1098 is deductible.