In 2009, my husband and I jointly purchased a condo with our daughter......50%/50%.....as an investment. We used a mix of savings and and funds ($100,000) from our home equity line of credit to pay for our half, though we also used funds from the home equity line of credit to make improvements in the condo and for other purposes (an additional $100,000). During 4 months of 2010 and 8 months of 2011, we rented our half of the condo. We don't intend to rent again. In 2009 (no rental), we deducted the full amount of interest on the equity line of credit Form 1098 on Schedule A, line 10. I am preparing the 2010 federal return at this time. Should I attempt to split the interest on the equity line of credit reported on 2010 Form 1098 and report the portion estimated to be attributable to the purchase and improvements for the number of months the unit was rented on Schedule E, line 12, while the balance would be reported on Schedule A, line 10? We pay 50% of the property taxes and 50% of the monthly HOA fees on the condo. I presume we would report the property taxes attributable to the months the property was rented on Schedule E, line 16. Can the portion of HOA fees we paid be deducted as part of the rental expense for the months the property was rented? On line 18 of Schedule E? Can property taxes paid on investment property not rented be deducted on Schedule A?