New refinancing issues

Technical topics regarding tax preparation.
#1
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22-Apr-2014 1:49pm
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San Francisco
TP has primary residence with zero debt – purchased with cash. Also has 3 other homes, and can choose to take the interest on any one of those second homes – but limited to just one.

Has yet another piece of land and wants to use a construction to permanent loan. I think I have three options:

1. Get a loan secured by the vacant lot and use the 24 month rule for a residence under construction

2. Pay with cash and then pull a loan out within 90 days of construction completion. Will then use this home as the 2nd home (vs his myriad of other homes). I don’t believe this has changed with the new tax law

3. Get a loan on the principal residence (knowing that isn’t deductible at all). When new home is complete, pull money out of new home and pay off principal residence home, and then loan is secured by 2nd residence. Does this work with the new refinancing laws? I know I have to keep the same amount or below of the original loan, but can this be done?

And of course all interest limitations will be observed.

Thank you.
 

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