Need to get your client thinking about deducting tax on a loan? Try these tips.
If your client has borrowed to invest, help her qualify for tax deductions on her loans by reviewing her investments and debts. It’s not only securities investments that count, it’s loans to buy business equipment too. If your client has a mortgage or personal loan and substantial investments, look at whether it makes sense for her to sell a few investments to pay off her loans. She can then take out another loan to re-invest. Unlike the mortgage, this one qualifies for an interest deduction.