Income Taxes and Record Keeping ( tax ) Message Board

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Strategies & Market Trends : Income Taxes and Record Keeping ( tax )

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To: RealMuLan who wrote (126)	10/20/1997 11:33:00 PM
From: Nasty P	Read Replies (1) of 5810

Yiwu, IRS specifically excludes credit card interest as an Investment Interest Expense. Ted Tesser has the same opinion (p.30 para 3). Your question actually contains an answer. By borrowing from credit card, you have no margin interest because you have no marginable collateral with credit card issuer (I assume you wouldn't do secured card borrowing @ 21% or so). Credit card interest is considered personal interest expense, and isn't deductible for that reason. Honestly, I don't see why you would ever borrow through credit card (even if it's First USA 5.9%). After the intro rate is gone, the interest will eat you alive. You should be able to borrow from your broker. Brown & Co, Regal and Datek have great margin rates. Check out this site if you want more sonic.net If you insist on deducting the credit card interest, find some support, although I doubt you'll find any. Good luck to you.

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