ADU Tax Strategy: Mortgage Interest Deduction vs Allocation

Meredith Munger
Jul 21
1 min read

One of the lessons you can learn from professional real estate investors is that the mortgage interest deduction only goes so far. By treating a mortgage as a business loan, my tax advisors help clients keep more of their income in their pocket.

These tax deductions make your net cost of borrowing closer to 3-5% - regardless of your interest rate.

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