- This topic has 45 replies, 9 voices, and was last updated 16 years, 4 months ago by
pemeliza.
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July 1, 2008 at 12:36 PM #231954July 1, 2008 at 6:14 PM #232124
(former)FormerSanDiegan
ParticipantIncome Tax implications:
Deductibility of interest on a principal residence or a rental property is for acquisition debt. If you purchase all cash, the maximum loan amount for which you can deduct the interest is $100K. SO, most of your interest debt is not deductible in the scenario you described.Why not make an offer based on NO loan contingencies and no appraisal contingencies. That’s effectively the same as cash. Also, demonstrate that you have the cash reserves to purchase outright. If I am a seller and I get that kind of offer, I would assume the buyer could perform.
July 1, 2008 at 6:14 PM #232174ParticipantIncome Tax implications:
Deductibility of interest on a principal residence or a rental property is for acquisition debt. If you purchase all cash, the maximum loan amount for which you can deduct the interest is $100K. SO, most of your interest debt is not deductible in the scenario you described.Why not make an offer based on NO loan contingencies and no appraisal contingencies. That’s effectively the same as cash. Also, demonstrate that you have the cash reserves to purchase outright. If I am a seller and I get that kind of offer, I would assume the buyer could perform.
July 1, 2008 at 6:14 PM #232163ParticipantIncome Tax implications:
Deductibility of interest on a principal residence or a rental property is for acquisition debt. If you purchase all cash, the maximum loan amount for which you can deduct the interest is $100K. SO, most of your interest debt is not deductible in the scenario you described.Why not make an offer based on NO loan contingencies and no appraisal contingencies. That’s effectively the same as cash. Also, demonstrate that you have the cash reserves to purchase outright. If I am a seller and I get that kind of offer, I would assume the buyer could perform.
July 1, 2008 at 6:14 PM #232114ParticipantIncome Tax implications:
Deductibility of interest on a principal residence or a rental property is for acquisition debt. If you purchase all cash, the maximum loan amount for which you can deduct the interest is $100K. SO, most of your interest debt is not deductible in the scenario you described.Why not make an offer based on NO loan contingencies and no appraisal contingencies. That’s effectively the same as cash. Also, demonstrate that you have the cash reserves to purchase outright. If I am a seller and I get that kind of offer, I would assume the buyer could perform.
July 1, 2008 at 6:14 PM #231991ParticipantIncome Tax implications:
Deductibility of interest on a principal residence or a rental property is for acquisition debt. If you purchase all cash, the maximum loan amount for which you can deduct the interest is $100K. SO, most of your interest debt is not deductible in the scenario you described.Why not make an offer based on NO loan contingencies and no appraisal contingencies. That’s effectively the same as cash. Also, demonstrate that you have the cash reserves to purchase outright. If I am a seller and I get that kind of offer, I would assume the buyer could perform.
July 1, 2008 at 6:16 PM #232120ParticipantALso, since it is a REO you could consider financing through the current holder of the property.
July 1, 2008 at 6:16 PM #232129ParticipantALso, since it is a REO you could consider financing through the current holder of the property.
July 1, 2008 at 6:16 PM #231996ParticipantALso, since it is a REO you could consider financing through the current holder of the property.
July 1, 2008 at 6:16 PM #232169ParticipantALso, since it is a REO you could consider financing through the current holder of the property.
July 1, 2008 at 6:16 PM #232180ParticipantALso, since it is a REO you could consider financing through the current holder of the property.
July 3, 2008 at 9:45 AM #232636pemeliza
Participant“Income Tax implications:
Deductibility of interest on a principal residence or a rental property is for acquisition debt. If you purchase all cash, the maximum loan amount for which you can deduct the interest is $100K. SO, most of your interest debt is not deductible in the scenario you described.”I believe that it is the case that if you refi within 12 months of purchasing cash the loan is considered “acquisition” debt. Please check me on this as I looked at the tax documents years ago.
July 3, 2008 at 9:45 AM #232758Participant“Income Tax implications:
Deductibility of interest on a principal residence or a rental property is for acquisition debt. If you purchase all cash, the maximum loan amount for which you can deduct the interest is $100K. SO, most of your interest debt is not deductible in the scenario you described.”I believe that it is the case that if you refi within 12 months of purchasing cash the loan is considered “acquisition” debt. Please check me on this as I looked at the tax documents years ago.
July 3, 2008 at 9:45 AM #232771Participant“Income Tax implications:
Deductibility of interest on a principal residence or a rental property is for acquisition debt. If you purchase all cash, the maximum loan amount for which you can deduct the interest is $100K. SO, most of your interest debt is not deductible in the scenario you described.”I believe that it is the case that if you refi within 12 months of purchasing cash the loan is considered “acquisition” debt. Please check me on this as I looked at the tax documents years ago.
July 3, 2008 at 9:45 AM #232810Participant“Income Tax implications:
Deductibility of interest on a principal residence or a rental property is for acquisition debt. If you purchase all cash, the maximum loan amount for which you can deduct the interest is $100K. SO, most of your interest debt is not deductible in the scenario you described.”I believe that it is the case that if you refi within 12 months of purchasing cash the loan is considered “acquisition” debt. Please check me on this as I looked at the tax documents years ago.
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