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<< Is there a way to mortgage a home I don't own (with owners permission, of course) so that I can deduct the interest?

Restated: Can you deduct interest you paid on a loan against real estate you don't own? >>

To be deductible as mortgage interest on your return, the loan must be secured by your primary or second home. If your relative gets a loan against his home and loans the proceeds to you, he (probably) has a mortgage interest deduction, and he has interest income from you. You, unfortunately, have a nondeductible personal interest payment unless, has already been pointed out, it qualifies as investment interest.

Phil Marti
Tax Preparer
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