Needless to say, depending on a financial situation, the income tax method is various other

Some good guidelines are maybe not collateralizing financial obligation with income tax-exempt bonds; perhaps not to shop for taxation-exempt bonds toward financing proceeds; and you will deposit lent funds for the a unique account that’s not related which have income tax-exempt securities.

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  • Even although you utilize the mortgage to acquire qualified ties, however your profile comes with income tax-exempt securities, this could direct new Internal revenue service to disallow element of the focus expenses.