The IRS Deductions Blog

Archive for the ‘Deductible Interest’ Category

Items on Amazon Right Now for Interest Deductible Investment Property:

1031 exchange, tax policy changes and real estate – part 3 of 3

Items on Amazon Right Now for Tax Interest Deduction:

Will the FairTax hurt home ownership with no mortgage interest deduction?

Question: One disadvantage of financing with bonds versus stock would be that?

One disadvantage of financing with bonds versus stock would be that:

1. a. Bonds create a legal liability to repay the principal of the loan and interest
2. b. Interest expense of a bond issue is tax deductible
3. c. Bonds do not increase the number of owners of a business
4. d. None of these

Answer: Okay I am revising this answer. It is definitely A.

It is absolutely not B or C as those are both advantages, not disadvantages. I don’t like this question because it says “versus stock” and because of that, the question is asked like its comparing financing with bonds versus financing with stock, and this “disadvantage” of answer A is outweighed by the disadvantges of financing with stock. I would argue this point with my professor if I saw this on a test. Just the “versus stock” part.

Items on Amazon Right Now for Tax Deductible Interest Expense:

What is Business Income?

Question: Is interest paid on Personal Loan used for Home Improvements tax deductible in US?

Answer: No. To be deductible the loan must be secured by the property. By definition a personal loan has no security other than the borrower’s word so the interest is not deductible.

Items on Amazon Right Now for Deductible Home Interest:

Tax Tip: Tricks to Mortgage Interest Deduction

NEW YORK (MainStreet) -On your Schedule A, you can deduct as mortgage interest only the amount charged on up to $100,000 of home equity debt. If you have total home equity debt of $150,000 and the interest on this debt for the year is $9,000, you can deduct only $6,000 ($100,000 represents two-thirds of total equity of $150,000, so only two-thirds of the $9,000 interest paid is deductible: $6 …

Home Mortgage Refinance | Take Advantage on the Right Time

Question: Margin Interest Deductible In This Situation?

I know margin interest is only deductible up to the amount of net invesment income I’ve received. Does that mean if I have $10k in short term capital gains and $10k in short term capital losses for a given year–IOW, no overall net gain–that I can’t deduct margin interest? Thanks in advance.

Answer: In your example, you would have $0.00 in net investment income. Therefore, your investment (ie margin) interest deduction would be limited to $0.00. It gets carried foward to future year though.

Items on Amazon Right Now for Interest Deductible:

Expert tips for cutting credit card debt

Being smart about credit card debt can help the average investor bank a guaranteed 18%. Read on for tips from financial experts on how to tackle debt and grow you savings.

Interest is tax deductible!