Can loan yourself money?

[Sherrie P.]

Can you loan yourself the moneyto purchase real estate therefore deducting mortgage interest?

[Craig Rismiller]

Yes, but you will likely have to pay income taxes on the interest income, thus the interest deduction is a wash. This sometimes happens with partnerships where one partner will loan funds to the business instead of both partners doing equity contributions. The partnership would then deduct the interest expense but the partner lending the money would have to put that income on their individual tax return.

I am sorry, but you can't do this to try to fool the IRS!!