Discussion:Principal Residence Purchase For Cash
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Discussion Forum Index --> Advanced Tax Questions --> Principal Residence Purchase For Cash
Discussion Forum Index --> Tax Questions --> Principal Residence Purchase For Cash
| 22 April 2008 | |
| Dear Tax Professionals:
If a taxpayer paid for his principal residence using cash because he did not want to lose the deal before financing went through and almost immediately took out a mortgage on the principal residence just purchased of approximately $150K to $200K would he be able to deduct the mortgage interest? Thanks, | |
| 22 April 2008 | |
| Now, Barb, Ron's been asking and answering questions here since 7 months before you signed up; take a look at the posts, he's clearly a tax professional. Don't be so quick (or definitive) on that profile stuff.
Ron, have you seen the discussion Home_Acquisition_Debt_vs_Home_Equity_Debt? It has a vibrant and lively back and forth with lots of great cites and examples about acquisition debt, and I noticed something about how long a taxpayer has to secure the debt with the residence and still call it "reasonable" - looks like it might lead you to the answer you want. | |
| 22 April 2008 | |
| Profile, schmofile!
IRS Notice 88-74 states: "Notwithstanding the tracing rules of section 1.163- 8T, in the case of the acquisition of a residence, debt may be treated as incurred to acquire the residence to the extent of expenditures to acquire the residence made within 90 days before or after the date that the debt is incurred." | |
