It’s been awhile since I had a a mortgage but perhaps someone can refresh me on IRS rules regarding investment interest expense…..
Hypothetically speaking, if I do a cash out refinance on my primary, say $500k,and the purpose of that $500k is to buy an investment property, I believe the mortgage interest would investment interest expense that I could deduct against the new rental. However, let’s say I don’t buy a property for 1 year. Could I deduct the mortgage interest as an investment expense too, if I simply stick the money into a money market fund? I think the answer is yes, but just wanted to check.
I don’t think I would have a problem qualifying, except I would need to finish my 2019 taxes this weekend 🙁 My one day/week furlough ends when the federal benefit ends this month , and for practical purposes I ended up making more money by not working that day than having to go back and work that day. I’m running out of government cheese so I think my next move would be to try to get some of the cheese from banks….It’s all fun and games until someone gets their eye poked out …lol
