Home Equity Loan to a Tax Savings

If you use your equity loan for business purposes, you can increase your tax savings by making an election on your return.For example, if a sole proprietor takes out an equity loan and buys office furniture for her sole proprietorship, she can take the interest deduction by filing an election with her return.The result will be a savings of Self-employment taxes, and maybe other benefits because of a decreased Adjusted Gross Income.

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