On Apr 28, 10:58 am, Mark Bole <ma...@[EMAIL PROTECTED]
> wrote:
> > Mortgage debt on a principal home, on the other hand, does allow a tax
> > deduction for the interest.
> Subject to a number of restrictions.
I see that there are income restrictions and restrictions as to the
amount of the mortgage.
> > Does the government consider borrowing against stock to purchase an
> > auto to be non tax deductible?
> Correct. It's only the interest on money you borrowed to *buy* the
> stock that might be deductible as investment interest expense.
> There is a general concept of proceeds tracing. To survive a tax audit,
> you should be able to show that loan proceeds for which you want to
> deduct interest were not mingled with other funds used for
> non-deductible personal expenses. This involves having separate bank
> accounts, making close-in-time transactions, and so on, similar to the
> rules for tracing separate property in states where marriages are
> subject to community property rules.
One should then avoid purchasing a vehicle directly from a brokerage
account that has a loan against the stock, but i am not sure how to
free up the cash without selling stock.
--
Ron
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