About mortgage expense deduction and Operating agreement

[Sachin Parikh]

Hi Fellow Bigger Pocketers,

I'm sure lot of us are in the same boat but I couldn't find an answer to my question in earlier forums.

We (me and my wife) formed LLC thru Zen Business and received Operating Agreement etc. To fund LLC to buy a property, we're taking home equity loan on our current home and funding thru our savings as well. Read some material online (and we're going to higher CPA later) but seems that mortgage interest can be shown as an expense on Schedule E.

So my question is, do I have to specify anything in Operating  Agreement (OA) now before we finalize to mae this clear? Or just fill Schedule E while we file joint return? 

Fellow investors input greatly appreciated!

Thanks,

Sachin