How a Home Equity Debt Strategy Cuts Your Tax Bill

Episode 25 of The Tax Strategy Podcast explores a little-used tax loophole: using home equity debt to purchase investment property and deduct the interest. Lucas explains the 2026 rules under the Tax Cuts and Jobs Act, including how the $750,000 debt limit applies, and walks through a concrete example of a homeowner in Portland who refi'd their primary residence to buy a duplex, saving $3,400 in taxes the first year. Luna pushes back on the risks—variable rates, leverage, and IRS scrutiny—and the hosts debate whether the strategy is worth it for the average listener. The episode also covers the difference between acquisition debt and home equity debt, the proper way to trace funds, and why the IRS looks closely at these moves. No fluff, just a specific, actionable idea for homeowners with equity. #HomeEquityDebt #TaxDeduction #MortgageInterest #InvestmentProperty #TaxStrategy #ACATracing #PortlandExample #IRS #TaxCutsAndJobsAct #RealEstateInvesting #Finance #TaxPlanning #FexingoBusiness #BusinessPodcast #TheTaxStrategyPodcast #LucasAndLuna #2026TaxRules #DebtStrategy Keep every episode free: buymeacoffee.com/fexingo