Besides the fact that this strategy is very risky, if I were to take out a second mortgage on my primary home and use the entire loan amount of the second mortgage to invest it in high yield corporate bonds, could I deduct the loan interest and closing fees from the capital gains generated with this cash? Since the sole purpose of the loan is to generate income, wouldn't it be considered a business expense? I searched the IRS website, but haven't found any relevant information for this particular use of a qualified second mortgage.
- posted
18 years ago