Since I do not earn enough to itemize, can I claim my primary home interest on schedule E for my rentals? I use the money to capitalize my rentals because the low rates.

[tagteam]

"...can I claim my primary home interest on schedule E for my rentals?"

First, you must have records to show how the proceeds of the debt were used.

See https://www.irs.gov/instructions/i1040se#idm140630720080112

Further, and perhaps more importantly, any portion of the interest that is not related to rental use cannot be deducted as a rental expense.

See https://www.irs.gov/publications/p527#en_US_2018_publink1000218987

[Carl]

Absolutely not. To do so would be fraudulent and you'd be 100% guaranteed an audit.

[tagteam]

It would be fraudulent if the borrower represented that the proceeds of the loan were allocable to the borrower's rental activities when, in fact, they were not.