Does loan product impact taxes?

[Eric Miller]

Just curious if the loan product used impacts how one files taxes? Example, if we use a 10% down second home loan but are planning to use the home as a STR, does IRS know or care how it was financed or just how we report the home's use? Meaning we would treat it like a business from tax perspective with reporting income/expenses and still be able to perform cost seg/bonus depreciation? Thanks!