| reformedbanker - 1/27/2024 06:11
No. This is not correct.
Edit add: If I have an LOC and sell 100,000bu of corn and use it to pay my note down in July to $0 and I have 1000 acres of growing crop out there also securing that LOC - pretty simple for the banker to advance back on it in Aug for me to buy a boat / IRA contribution/ etc. It's a very secure loan with lots of cushion. The debt is still business debt however. It is not consumer debt and it can be deducted.
You ever been party to an audit?
You claim to be a banker, and a bankers job is to make money for the bank. I would never take a banker’s advice on borrowing money to fund lifestyle, ira contributions or anything else.
Farmers, have you ever see a run down looking bank? Nope, usually the nicest building in town-even in low income rural areas. |
Save on operating interest or invest in mutual funds?
