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Investments > Financial Planning > Interest tax de...
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Interest tax deductions

by Ron Peterson <ron@[EMAIL PROTECTED] > Apr 28, 2008 at 09:52 AM

There are several categories on interest in the tax code which brings
up the question of what types of debt are best.

Debt to finance a personal vehicle doesn't seem to allow a tax
deduction for the interest.

Mortgage debt on a principal home, on the other hand, does allow a tax
deduction for the interest.

And, debt incurred for investment purposes also allows a tax deduction
for the interest.

If one doesn't want to sell stock in an investment portfolio because
of the possibility of high(?) returns or capital gains tax, what type
of debt is best for buying an auto or a house?

Does the government consider borrowing against stock to purchase an
auto to be non tax deductible?

Borrowing against stock for purchase of a house has the threat of
higher future interest rates and the possible forced selling of stock
to keep adequate safety margins on the loan.

If investment income is close to zero, is investment interest expense
deductible from other taxable income like mortgage interest?

--
    Ron

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 12 Posts in Topic:
Interest tax deductions
Ron Peterson <ron@[EMA  2008-04-28 09:52:11 
Re: Interest tax deductions
Mark Bole <makbo@[EMAI  2008-04-28 10:58:01 
Re: Interest tax deductions
kastnna <kastnna@[EMAI  2008-04-28 12:19:03 
Re: Interest tax deductions
Ron Peterson <ron@[EMA  2008-04-30 04:06:22 
Re: Interest tax deductions
Mark Bole <makbo@[EMAI  2008-04-30 08:20:39 
Re: Interest tax deductions- good debt vs bad debt
jIM <noreplysoccer@[EM  2008-04-30 12:21:36 
Re: Interest tax deductions- good debt vs bad debt
kastnna <kastnna@[EMAI  2008-04-30 16:05:09 
Re: Interest tax deductions- good debt vs bad debt
Will Trice <wtrice@[EM  2008-05-08 19:48:41 
Re: Interest tax deductions
Ron Peterson <ron@[EMA  2008-05-06 12:55:03 
Re: Interest tax deductions
Rich Carreiro <rlc-new  2008-05-06 14:27:12 
Re: Interest tax deductions
Mark Bole <makbo@[EMAI  2008-05-06 14:59:49 
Re: Interest tax deductions- good debt vs bad debt
kastnna <kastnna@[EMAI  2008-05-08 21:15:11 

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tan12V112 Sat May 17 5:05:31 CDT 2008.