Interest from Private Lender on Flips and Tax Deductions

I hope I am asking the correct question:

If I am purchasing and improving a flip with the following scenario, how would the interest being deducted in terms of when I capitalize on the property? Or am thinking through this correctly:

Purchase Price: 25k 

Repairs and all holding cost except Interest =25k

Value and sales for =-100k

Borrowed from the gate 100% of value or 100k @ 12 % 

From Purchase  on Jan 1 2013 to Sell  Dec 31st 2013 or 1 year or 12,000 in interest

Would all of that 12k be able to be expensed towards that property in 2013?

What if that 50k equity that was pulled from it was then used to improve a property that was sold in 2014?