Beat the tax man by re-arranging debt - MoneySense

Beat the tax man by re-arranging debt

Borrow to invest, save to spend.

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In general, interest on money you borrow to invest is tax deductible, but interest on money you borrow to spend isn’t.

So rather than using your savings to buy stocks and borrowing to buy furniture, switch it around: by borrowing cash to buy stocks and using savings for the sofa, you turn the interest into a tax deduction.

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