December 17th, 2015

TAX TIP OF THE DAY... deduct interest paid

Mortgage interest is a given.  But add these 7 additional types of interest:
1) on certain RV and boat loans
2) credit card interest for partial business and rental use
3) loans for the purchase of investments
4) on debt & credit cards used to purchase schooling & supplies beyond high school
5) on vehicle loans for partial business and rental use
6) home equity loans for any use
7) certain loans from family members

As always, there are some great tricks and lousy limitations with these deductions.  For example... a special loophole allows you to deduct 100% of business credit card interest, even though the original charges included a personal big screen TV & Christmas gifts from December 2012.

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If you need any help... www.baboiancpa.com