Obviously, depending on your financial situation, your own income tax strategy will be various other

Some very nice rules of thumb were perhaps not collateralizing obligations with taxation-exempt bonds; not to buy taxation-exempt bonds towards the loan continues; and you can depositing lent financing into the a separate account that’s not related having taxation-exempt ties.

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  • Even if you utilize the mortgage to invest in qualified bonds, however your profile has income tax-excused bonds, this could direct new Internal revenue service so you can disallow section of their notice costs.