Building A New Home In Retirement

[ncbill]

Pledged asset line is not deductible and cannot be used to offset bond interest? Let's say I borrow 500K and pay 35K interest. Can I offset against other dividends and interest in my brokerage account and use the 500K to pay for the house? It sounds like pledge asset line funds have to be used directly for investments. Not sure how they can tell but if I have 500K in treasuries would it be considered OK to offset the interest paid for the asset line with interest from 500K in treasuries? In other words, how would they know as long as I have brokerage assets well in excess of the 500K?

Colleague told me just sign up for a 500K mortgage, put 90% down and deduct up to 750K mortgage loan interest and then pay off the mortgage once we sell the old house in 18 months.

Pledged asset lines can't be used to buy investments but are good for anything else.

Borrowing at current rates via the above should be a whole lot cheaper versus selling & having to pay the taxes on capital gains (federal & state) to raise the $3-$4 million for a new home you mention in a previous post.

Even if the interest paid (until you sell the old home & use those proceeds to pay off the line) isn't deductible.