Real Estate TAX Deduction

[Henry Li]

With the new tax law, our primary residence mortgage interest doesn't have tax advantage anymore to my understanding. I however own other investment properties , and there is one that is actually paid off. Would it make sense to get a loan from the paid off rental property to pay off my primary residence? 

This way, the rental property would have a mortgage, but the interest would be tax deductible because it is a rental. Does it make sense? or there is something that I'm not seeing it right?  

[Eamonn McElroy]

@Henry Li

"With the new tax law, our primary residence mortgage interest doesn't have tax advantage anymore to my understanding."

The TCJA didn't change anything regarding interest deductibility of principal residence mortgages originated on or before December 15, 2017.  If you're now taking the standard deduction instead of itemizing that's another issue.

"But my accountant told me before that home office is not worth it because the percentage used shouldn't be a lot....and it is a red flag etc etc... would you recommend claiming home office?"

It used to be 30+ years ago.  The internet disrupted traditional work spaces and many self-employed individuals and employees work from home now.  Today, a home office is common and not a red flag.  The percentage used doesn't matter.  What matters are the facts and if you can substantiate that percentage.  Sounds like your CPA isn't really advocating for you here...

@Zachary Bohn

"if you are going to have a home office, it needs to be a separate room that is used solely for business."

Doesn't have to be a separate room.  Can be a portion of a room that is dedicated exclusively to business if the division is clear.  : )