Can I borrow money to buy a home and still receive a mortgage interest deduction?

Asked by Matthew R., San Francisco, CA Fri Jun 6, 2008

Has anyone ever heard of a business owner borrowing money from his or her business to purchase a home -- as opposed to getting a conventional mortgage through a bank? If I do this, could I still receive a mortgage interest deduction on my personal taxes? Would my company (pet products; nothing to do with real estate) have to issue me a 1098 statement at the end of the year?
I'm also interested in whether there are ethical issues involved here. Thanks for your opinions!

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Jeffrey Schn…, Agent, Austin, TX
Fri Jun 6, 2008
Matthew,

Happens all the time. You have to setup the loan correctly to be able to take the deduction, so get your accountant to work out the details. Some of it depends on the structure of your business (SP, LLC, C-Corp, S-Corp).

Regards,

Jeffrey
1 vote
Matthew R., Home Buyer, San Francisco, CA
Thu Jul 3, 2008
Thanks for the answer! I ended up getting approved for a bank mortgage, but it was good to know I had this option as back-up.
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