Is credit card interest tax deductible if you put the money on the credit card towards investments?
For example, if I used a cash advance to
1. buy stocks,
2. invest in bonds/fixed income assets
3. “refi” my personal mortgage
4. buy investment property
or any other situations where credit card interest is tax deductible?
Thanks for all you responses. Just to clarify –
Say I borrow $100 from my credit card at 10%.
I owe $110 at the end of the year.
I put this same $100 into a stock (or some other investment). It goes to $120 and I sell, gaining $20.
1. Do I have to pay taxes on $20, or $10 ($20 gain minus $10 interest)?
2. If I didn’t sell, can I deduct the $10 interest against my other income?
No. Only those loans that are secured by your real property unless business activity is involved.
What is the best site or company to do on line investing @ ?
What do you think is the best place for online investing, stocks, bonds, trading, selling etc…
via web based ?
I use Scottrade.
NO account maintenance or inactivity fees.
Free real-time stock quotes and charts.
Free real-time Dow Jones news.
Free “Gainskeeper” software for cost-basis accounting.
Excellent research sources.
Excellent customer service (over 350 Branch offices).
Excellent trading platforms (very user friendly).
$500.00 minimum to open an account.
$7.00 online trading commission for stock over $1.00 a share.
For comparison purposes:
Sharebuilder’s real-time online trading commission is $9.95.
T.D. Ameritrade’s online trading commission is $9.99.
E-Trade’s standard online trading commission is $12.99.
What kind of bonds nowavailble for exemptionunder sec 54 EC?
i wish to invest in bonds which give me exemption u/s 54 EC
Indian highway bonds……………
what is the relationship between interest rates and inflation?
And what would be the implications for someone thinking about investing in Bonds?
Interest rates and bond values move inversely. Think of a playground see-saw. Interest rates rise, and existing bond values fall. Inflation is something that has and will cause the federal reserve to raise short-term interest rates, which causes existing bond prices to fall. If you are investing in bonds for the income they generate (regular interest payments from the issuer), then you’ll be OK. If you’re investing in bonds with the intention of selling them later for a gain, you may not be successful. Of course, even the experts are really bad at predicting interest rate moves, so don’t try to predict the future too much. If you buy individual bonds, pay attention to quality and consider building a bond ladder. If you are working with a smaller amount of cash, consider bond funds. Also, be sure to balance this investment with some equity (stock) investments to give you diversification. Good luck!
Can banks invest FDIC insured deposits in investment grade bonds?
Can banks invest FDIC insured deposits in investment grade bonds? If so, are there any restrictions on the percentage of deposits that can be invested in bonds?
Banks take all FDIC insured deposits and use that money to invest in a variety of things which may include securities, bonds, etc, however their most profitable investments is by loaning that money back out in the form of credit cards, where cardholders guarantee to pay them 12-30%+ a year return.
Other investments include loans such as residential and commercial mortgages, which has not worked out too well.
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