[Dr. Franklin]

they re-financed every 17 months? the loans would have to have a significant amount paid down in order to get another loan.
is someone else paying down the loans?
do they pay any taxes on the money they get from the loan?
seems like a pretty easy mechanism to receive payoffs.

I smell a tax dodge in here. As I remember the tax code, mortgage interest is only deductable on the original mortgage, but not a home equity loan. I suspect he did that and no one from the IRS dared to audit his return.

[sten]

Writing off the interest is one thing...

but the question is, was the money received from the loan declared at all.

You don’t get a w-4 for money received from a loan