Tax FAQ
 

Is Credit Card Interest Tax Deductible If You Put The Money On The Credit Card Towards Investments?

Question by tc61380 | Posted in United States

For criterion, if I used a cash advance to
1. buy stocks,
2. invest in bonds/fixed proceeds assets
3. "refi" my personal mortgage
4. buy investment capital goods

or any other situations where credit card interest is tax deductible?
Thanks for all you responses. Just to clarify -

Say I draw $100 from my credit card at 10%.
I owe $110 at the end of the year.

I put this same $100 into a stock (or

Answer: No. Only those loans that are secured by your actual property unless business activity is involved.
 
 

Is Rehab Debt On Credit Card Interest Tax Deductible?

Question by M-investor | Posted in United States

I did a rehab work up and used my credit cards to buy materials. Can I take the interest payments as a tax deductible until the balance is paid off?

Answer: No the interest is not deductible, that is considered deprecating debt interest, it is not secured by the home, so it is not deductible on the Federal Tax return



Publication 936
http://www.irs.gov/publications/p936/ind ex.html

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If You Take Out A Home Equity Loan To Consolidate All Of Your Debt, Is The Interest Tax Deductible?

Question by patswin07 | Posted in United States

If the interest is tax deductible, what is the proportion...100%, 75% etc?

Answer: The meet depends on several fctors that cannot be gleaned from your question. See IRS Publiction 936 for your particular circumstances.

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Is It Better To Put A Lot Down When Buying A House And Make Lower Payments? And Is Interest Tax Deductible?

Question by nsainradio | Posted in Renting & Real Estate

I legitimate inherited some money. I was already looking at buying a house (my first one), but now I have a lot more to put down on it. Is it better to put a lot down (like 70%) and traverse smaller payments? Or better to put about 20% down and have higher monthly payments, then put the balance into other investments? I can afford the higher payments, but I just don't know which is the better petite- and long-term investment strategy.

I know that the more you borrow, the more interest

Answer: It is always recovered to try to let your money work for you. So you want to put down as little as possible perhaps try to get a graduated payment mortgage where the payments up front are less. Meanwhile you call for to invest the remaining money in perhaps another property which you can rent out and have the tenant pay the mortgage for you.

The interest payments are tax deductible on your dear residence and are considered an expense on the rental.

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American Living In Switzerland: Is Interest On A Mortgage Tax Deductible?

Question by Eric Hoffman | Posted in Other - Taxes

Greetings! I'm a US villager living in Switzerland, I've lived here for almost 6 years. I own a house in the US, and am renting it out. I have to pay a monthly interest in as well to the mortgage. Now my question is: Is the interest tax deductible or not, since it is an expense? Thanks!

Answer: Mortgage interest is an expense on List E of your tax return.

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