USA Paid cash for home, then took out mortgage

[djacksona]

Client purchased a home for cash (to make the offer more attractive for the seller) and then took out a first mortgage of $400k a month later.

Question if this qualifies for mortgage interest deduction because the cash taken out after the purchase (cash-out).

Can you see any options for deducting besides the obvious, "this is home equity debt, not acquisition debt, so is limited to $100k of debt"?

Thank you,

Dave

 

[kirby]

You have 90 days after purchase to finance the home and still qualify as acquisition debt. See pub 936