If the mortgage interest deduction goes away, is there an easy loophole?

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georgewpotts

New member
The loophole would be to create a company that owns the house, then rent the house from the company. The company would be able to deduct the interest on the house.

Or own your neighbor's house and they own your house. Rent your house from your neighbor and rent your neighbor's house to them.
 
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WayneZ

New member
Substance over form. Just because something is "technically" legal doesn't mean that it will be allowed.

The IRS would toss out these arrangements as sham transactions.

Either way, I don't expect the mortgage interest deduction from a primary home to disappear. I do expect the interest deduction for the 2nd home to disappear.
 
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