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Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?


To: DSPetry who wrote (738)2/23/1999 11:49:00 PM
From: Colin Cody  Read Replies (3) | Respond to of 1383
 
Dave, The IRS / Congress requires a U.S. taxpayer to TRACE LOAN PROCEEDS.

If you borrow funds and they are DIRECTLY funneled into a FULLY TAXABLE investment then the interest is likely Investment Interest or Passive Activity Interest, Rental Property Interest, or whatever it was that you invested in.

There is no requirement that "investment interest" be charged on a broker's margin account, if that's what you were getting at.

Hope this helps you out!

Colin