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Dwdonhoff:

<<<If you pay cash and then obtain a mortgage, the mortgage is not a refinance. Refinance requires that there be an existing mortgage.>>>

This is not true... but also not relevant.>>>

"*EVERY* purchase is financed (unless it is a straight deed transfer without consideration/money traded.) If there is money traded for property, that money has to be financed from somewhere/someone. Whether it is taken from a banker's account, friends/family, or your own 401(k) or taxable account... with, or without, written repayment terms is irrelevant to whether it is financing."

I am going to disagree. IN the context of real estate, reciting that a property is financed implies a mortgage loan (and mortgae or deed of trust securing the loan. Think about contracts that contain a "financing contingency" versus contracts that are for cash (and without a fincing contingency). That diference would make no sense emplying your suggested definition of financing.

You definition implies that a home that is owned free and clear of any debt is still financed?

"Anyway... what it is called is irrelevant to the question of tax deductibility..."

Agreed.

Regards, JAFO
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