Rental expenses or mortgage interest deductions

wrote

Yes. In fact, using the tracing rules, you have to report that interest there.

Only for your non-rental interst on the house.

No. Only the interest on the amount you use to buy the rental property is rental interest.

Make life easier by keeping the loans separate.

Thanks. Does that mean once I use the equity line to buy a rental, I can't refinance that debt to the primary residence in order to qualify for rental expenses? (even though it was originally used to buy the rental.)

To make the numbers clear, if I take out $300k from the equity line of my primary residence and do the following: $200k -> buy a rental property $100k -> remodel the primary residence. Then I should deduct 2/3 of interest on Schedule E, and 1/3 of interest on Schedule A, right?

Then if I refinance my primary residence for $300k to pay off the equity line, can I do the same prorate? 2/3 of interest -> Schedule E; 1/3 -> Schedule A?

Or do I need to refinance the primary residence for $100k, and refinance the rental property for $200k? Then each mortgage interest have its own category and can go to different schedules.

Thanks, Ian