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Save on operating interest or invest in mutual funds?
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Kooiker
Posted 1/28/2024 08:15 (#10597168 - in reply to #10597157)
Subject: RE: Save on operating interest or invest in mutual funds?



BrianFerentz - 1/28/2024 08:09
reformedbanker - 1/27/2024 06:30 Only in my capacity as the banker of a customer being audited... the IRS would just need to see the interest payment on the LOC. The IRS doesn't care a bit if you leverage your business to fund lifestyle. It is business collateral and business debt. Why is this upsetting you? Edit: also, my advise above was pay down debt is a strong risk free return to OP's question
Business collateral and business debt? Not a chance if the advances on loc are used for lifestyle toys, vacations and ira contributions. So I can leverage any farm asset to buy toys and deduct it?




No you can't deduct the cost of the toys.   

Depending on how you structure your business and how you handle the transaction between your business and your personal bank account, yes/no you could/can't legally deduct the interest cost of borrowing the money.      If you handle it correctly you are NOT borrowing the money to buy the toys even though that is what you do with it AFTER it is placed in your personal bank account.


You really should visit a CPA sometime to ask your questions.

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