The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/my-wife-and-i-area-borrowing-money-from-my-30629573.aspx

Subject:  Re: Mortgage interest deduction Date:  4/10/2013  6:32 AM
Author:  TMFPMarti Number:  118352 of 120816

My wife and I area borrowing money from my parents. We've had an attorney draw up a loan documented, which includes the following clause:

As security to ensure prompt payment of this Note, Maker shall grant a second priority security interest encumbering the real property known as [address name].

Does this make the interest deductible? There will be no documents filed with the registry of deeds / land court


According to Pub 936 the encumbrance must be recorded, so IMO this doesn't work.

Phil
Rule Your Retirement Home Fool
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us