On Apr 30, 8:20 am, Mark Bole <ma...@[EMAIL PROTECTED]
> wrote:
> Ron Peterson wrote:
> > I see that there are income restrictions and restrictions as to the
> > amount of the mortgage.
> Schedule A limitations based on income, yes. Also, only first and
> second home qualify. Also, you have to keep track of acquisition vs.
> equity debt, the law is designed to prevent endlessly refinancing your
> equity and still fully deducting all interest.
I see that the deduction doesn't disappear entirely based on income.
There is a maximum of a 60% reduction and a maximum reduction of 3%
of income beyond $157,000(?).
> > 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.
> That's the whole point of the law: personal interest to buy a car is not
> deductible. Interest on money borrowed *directly* for investment
> purposes is.
Since interest is fungible, it's a silly rule. But, my broker says to
use such loans as tem****ary ways to manage investments.
> As previously mentioned, tax consequences are just one of many factors
> in determining whether borrowing money makes sense.
I was just looking at the situation where one can borrow for less than
what investments return. In which case, tax deductions are im****tant.
--
Ron
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