In the world of real estate investment and tax strategies, cash damming stands out as a method for converting non-deductible personal debt into tax-deductible business or investment debt. This article explores what cash damming is, its history and background, suitability, financial benefits, legality, common pitfalls, and the importance of proper guidance.
What is Cash Damming?
Cash damming is a financial strategy that allows homeowners and real estate investors to convert their non-deductible mortgage debt into tax-deductible business or investment debt. By using rental income or business revenue to pay down the mortgage on their principal residence and then borrowing to cover rental or business expenses, individuals can achieve significant tax savings and accelerate their mortgage repayment.
