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To: Jon Koplik who wrote (37403)	7/30/1999 11:05:00 AM
From: John Dough	Read Replies (2) \| Respond to of 152472

OT (Sorry, I meant to send this as a PM) Margin debt interest rates now are lower than mortgage rates, so I'm not sure I see the big attraction. I though about this a couple of weeks ago. I could pay cash for a house by borrowing on margin from my account, which I now pay 6% margin interest on. I believe that the total amount (once I've got enough interest to itemize my taxes) would be deductible. The two potential problems I see are: 1) In an audit situation, the IRS might disallow a margin loan for a house, as an investment expense, and declare it non-deductible. 2) I don't recall from the tax laws, but can you qualify for itemizing your taxes if you have only margin interest that qualifies? (i.e., no mortgage or other deductible interest). Mark