Is credit card interest tax deductible if you put the money on the credit card towards investments?
Dec 08
Credit Card Interest Bonds, Credit Card Interest, Interest Tax, Money Investments, Stock 7 Comments
For example, if I used a cash advance to
1. buy stocks,
2. invest in bonds/fixed income assets
3. “refi” my personal mortgage
4. buy investment property
or any other situations where credit card interest is tax deductible?
Thanks for all you responses. Just to clarify -
Say I borrow $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 some other investment). It goes to $120 and I sell, gaining $20.
1. Do I have to pay taxes on $20, or $10 ($20 gain minus $10 interest)?
2. If I didn’t sell, can I deduct the $10 interest against my other income?
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