Should I use money I have in my home mortgage to pay, or should I
borrow the money as the interest should be tax deductible?
Q.
I will soon have an opportunity to buy equity in a private
company I work for. The shares return approximately 50% dividends
per year. Should I use money I have in my home mortgage to pay, or
should I borrow the money as the interest should be tax deductible?
I have an income of approx $100k and apart from my home no real
investments.
A.
You should certainly borrow the money because the interest will
be tax deductible but make sure you keep your investment loan
strictly separate from your non deductible housing loan to simplify
things at tax time.
Each week financial advisor Noel Whittaker answers your
questions.
