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From: das@ucla-cs.UUCP
Newsgroups: net.taxes
Subject: "Principal Residence" and Tax Reform
Message-ID: <5957@ucla-cs.ARPA>
Date: Tue, 11-Jun-85 03:06:33 EDT
Article-I.D.: ucla-cs.5957
Posted: Tue Jun 11 03:06:33 1985
Date-Received: Fri, 14-Jun-85 06:02:54 EDT
Organization: UCLA Computer Science Department
Lines: 7

Is anyone familiar enough with the Administration's tax reform proposal to
find the flaw in the following trick (or did they miss something)?

Situation:  You've paid much of the mortgage on your house, and you'd like
  to buy a second, but under the reform plan, you can't deduct the interest.
Solution (courtesy of a friend):  Pay for the second home by refinancing your
  principal residence, and continue deducting the interest you pay.