@prash wrote:
@Opus 17
Thanks for your valuable inputs.
Is there a 90-day rule for investment properties , similar to primary residence properties. That says that, you can buy property in cash(to beat market offers, etc...) and do immediately refinance within 90-days, and it would be still considered as acquisition debt. I am 100% sure it applies to primary residence, but i am NOT clear if it applies to investment properties.
The whole reason for buying cash, is to close the deal sooner with impatient sellers, and then do refinance immediately in the background, and still be considered as acquistion debt.
I know there is a 90 day rule for residential acquisition debt, it's in publication 936 and I've also had an occasion to look up the actual statute (tax code) to check something. I don't know of anything similar for commercial property, either affirmative or negative; i.e. I don't know of anything that definitely says there is and I don't know of anything that definitely says there isn't.
If there is no direct denial of the treatment, it might be reasonable to apply the residential rule and hope the examiner agrees with you if you are audited. However, you may want to get advice from a professional that you pay for, and so the professional is responsible to you if they are wrong, besides just talking to strangers on the internet.
