Posted on: 06-11-09 14:37:56
Quote:More or less, yes.
Originally posted by JRF
Can you shed some more light on the write-off part. How would obtaining LOC and pay off your mortgage would be written off? Aren't you referring Smith maneuver.
It is possible to do.
The bigger question is whether it is profitable for you or not.
You need to account for portfolio performance and the taxes you will pay in the returns.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Interesting.
How to write off the interest from the LOC that you use to buy property aborad. Does the property need to generate rent so that interest on the loan could be written off.
Quote:
Originally posted by pratickm
Quote:More or less, yes.
Originally posted by JRF
Can you shed some more light on the write-off part. How would obtaining LOC and pay off your mortgage would be written off? Aren't you referring Smith maneuver.
It is possible to do.
The bigger question is whether it is profitable for you or not.
You need to account for portfolio performance and the taxes you will pay in the returns.
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The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
Quote:Not necessarily.
Originally posted by JRF
Interesting.
How to write off the interest from the LOC that you use to buy property aborad. Does the property need to generate rent so that interest on the loan could be written off.
I believe the rule is that there should be a reasonable expectation of returns when the investment is made.
Returns could be in any form - income or appreciation.
The part I don't know is how (or whether) foreign investment is eligible for the deduction.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
