June 20th, 2010 10:08 PM by Eric Fang
The following question contributed by a very smart borrower:
Q: I have a primary loan of 135k and the rental with no Loans. Is it better to refinance my rental house and payoff the primary home?
A: This is a very creative idea. Indeed I think it's beter to have the loan on the rental house for the tax purpose. Since your standard deduction is about the same as the property tax plus interest; if you have the loan on your rental property, you can deduct all the interest on the rental and save more on the tax deduction.
What a smart borrower!!!