. As you file your tax return this season, are you claiming a deduction for any interest costs? If not, consider setting yourself up for deductions in the future.I won’t spend time today talking about the rules around interest deductibility, but I will say that, generally, you can claim a deduction when you’ve incurred reasonable interest costs for the purpose of earning income from a business or property.
The concept is that taxpayers are allowed to rearrange their affairs so that borrowed money is used to finance the purchase of income-producing assets while cash, or other equity, is used to finance the purchase of personal assets. Rearranging things this way allows your interest to become deductible.
Tim Cestnick, FCPA, FCA, CPA, CFP, TEP, is an author, and co-founder and CEO of Our Family Office Inc. He can be reached at