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> tax deductible Ehhhh be careful. Margin interest in the US is tax deductible only to the extent that you used the margin loan to buy investment assets. If yo
by zrail 7y ago
> tax deductible
Ehhhh be careful. Margin interest in the US is tax deductible only to the extent that you used the margin loan to buy investment assets. If you use margin to buy a share of Starbucks, great. If you use it to buy a coffee, you’re out of luck.
- arcticbull 7y agoConceptually, however, if you were to sell a share of Starbucks, use the proceeds to buy a coffee, and then borrow against your margin to restore your position, then just borrowing against margin to buy coffee is net-net the same thing. It would even result in a wash-sale.