Quote:
Originally Posted by manaboutown
I wonder if the bond interest would remain nondeductible if it could be shown that the unpaid bond principal was used solely to make investments?
|
Quote:
Originally Posted by manaboutown
Otherwise, and most likely, the interest paid on the bond remains nondeductible while returns on the investments are usually taxable in one way or another. Of course the more a stockbroker has to invest for a client the more he can make in commission income and management fees if that is how he is compensated.
|
I don't believe the IRS subscribes to the allocated pile game. Please explain where you have seen this done.