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Hi vkg,

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.

Anyway... what it is called is irrelevant to the question of tax deductibility... which has now been pretty well answered by Peter, I believe.

Dave Donhoff
Leverage Planner
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