|
south central WI | barren - 1/27/2024 05:44
Maybe I'm misunderstanding this but are you saying you can buy a boat using your LOC and deduct the interest on your farm return?
Technically you can, you just have to do it smarter. You borrow $100k for inputs, which is legitimate. You get $100k in crop sales. You buy your toys with that money instead of paying the loan back. Technically you are using borrowed money for the toys/ira/etc, and the interest you pay on the LOC is deductible because money was used to buy inputs. I believe that would survive the audit. If you paid back the LOC, then wrote a check out for a boat/ira/toy that same day, that would not survive an audit if they found out. It's basically the exact same thing, but not to an IRS agent. | |
|
Save on operating interest or invest in mutual funds?
