By the way, the concept of using a corporation to buy a home in order to fully deduct the mortgage interest sounds too easy to be true.

So, the corporation buys/owns the home, pays for any mortgage, maintenance, taxes, insurance, maybe utilities, whatever can be deducted as business expense, such as depreciation. The underlying person(s) (shareholders) rent from the corporation at fair market rent. If the rent is less than the toal exepnses, you have a tax deduction that can be passed through to the shareholders (if you make more than $150K, has to be carried over, but can be washed-out when you sell).

Am I missing something?

I suppose one drawback is that a corporation cannot take advantage of the $500K tax-free gain (another cause of the housing bubble), should real estate ever go up again in the future. But, any gain would be taxed at long term cap gain rates, and any loss could be deducted at full income tax rate.