[quote=flu]
Shit. I did not know this… So let me get this straight.. If one took out a loan on the original property when buying it, the mortgage interest is deductible. But if one first purchase it with cash and subsequently refinance it taking cash out, it’s not? That sucks….
Looks like plan B… rolling it into another investment property it is….[/quote]
On a personal residence, I think financing put in place within 30 days of COE is treated as purchase money debt for tax purposes. (the part I’m not remembering right now is whether its 30 days. It might be 60.) I don’t think there’s any such exception for investment property. Yeah, it kinda sucks.
