You can't use an accounting trick to get a tax deductible loan

By Noel Whittaker
Updated August 28 2017 - 10:18am, first published August 10 2017 - 12:38am

About three years ago, I invested $40,000 in managed funds from my own savings. Now I have an approved home-equity loan of $100,000 and also a mortgage of $250,000. I plan to sell the managed funds to reduce my mortgage and will then reinvest in more managed funds using a home-equity loan so I can claim a tax deduction for the interest. Instead of selling the managed funds can I transfer $40,000 from my home-equity to my home loan and claim a tax deduction on interest against the managed funds?

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