Re: Interest tax deductions- good debt vs bad debt

>
>  ...
> The moral of the story is that certain debts do get a tax deduction
> which makes employing them more advantageous. However, the terms of
> the debt will play a much larger factor in determining whether it is
> "good" or "bad" debt.
>
Good debt vs bad debt- there appears to be a gray area in interpreting
good and bad (what is the definition of good?).

My understanding is that mortgage debt is not good because it is tax
deductable, it is good because the asset the debt was used to secure
goes UP in value over the life of the loan.  Car debt is not bad debt
because it is not tax deductable, car debt is bad because the value of
the product the loan was used to secure has decreased in value at the
end of the loan term.

The fact the mortgage interest is tax deductable is icing on the cake
relative to the appreciation of the house itself, which is the real
profit from the good debt.

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