Hi,

1. Current home mortgage (originated 2015) is $760k

2. HELOC is about $250k (the LOC open before 2015 as well and borrowed $50k then, made additional draw of $200k in 2020 to buy rental).

3. Now if the tax payer takes out $1,060,000 ( cash out $50k to but another rental)

$760000+$250000+$50000=$1060000

How would them allocate the interest?

1) $760,000 goes on Ach A

2) $100,000 LOC goes on Sch A?

3). the rest count as rental interest ?

Any suggestions?

Thanks!