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You can only deduct the margin interest if you're buying property for investment purposes, not for personal use.
by DrAwdeOccarim 6y ago
You can only deduct the margin interest if you're buying property for investment purposes, not for personal use.
- deleted 6y ago[deleted]
- patio11 6y agoHe's describing "tax aware borrowing." JP Morgan explains this to their clients here: https://www.jpmorgan.com/jpmpdf/1320698073211.pdf https://www.jpmorgan.com/jpmpdf/1320698073211.pdf ; the example on the bottom of page 2 walks through the mechanics. At no point will the client directly use the borrowed money to purchase a home. They will use the borrowed money to purchase securities, which are (by definition) for investment purposes, and for which 100% of margin expense is deductible. Coincidentally, they will also have sold some securities at some other time in the year, and used the proceeds of that sale to buy a home (with cash).
- DrAwdeOccarim 6y agoVery insightful, thanks for sharing.
- deleted 6y ago[deleted]