Can I write off interest on my rental in MI while I live & rent in CA?

[Tom Read]

I own a condo in Novi, MI that I purchased in 2001. I married & moved to take a job in California but wasn't able to sell my condo. My wife & I rent in San Francisco & our annual income in 2012 was $ 207k. My CPA tells me that I can't write off the interest on the condo in MI, until either I sell it or our annual salary drops below 150k. Friends & co workers tell me that I should be able to write off the interest & I would like some one who knows who is right & is it time
to get myself a new accountant ? I would appreciate clarification on the subject.
Tom

[Steven Hamilton II]

Tom Read,

Your accountant is correct.

You can itemize the prorated portion between when it was your residence and when it was your rental.

The remaining interest is an expense against rental income. Those expenses in excess of your rental income cannot be deducted in the current year. They are carried forward.

-Steven