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Leveraging debt can lead to tax deductions for interest payments from "summary" of Tax-free Wealth by Tom Wheelwright
When it comes to taxes, leveraging debt can be a powerful tool in your financial arsenal. By strategically using debt to finance investments, you can actually benefit from tax deductions on the interest payments you make. This means that the interest you pay on loans can be deducted from your taxable income, reducing the amount of tax you owe. For example, let's say you take out a loan to purchase an investment property. The interest you pay on that loan can be deducted as an expense, which lowers your taxable income. This can lead to significant savings on your tax bill, allowing you to keep more of your hard-earned money in your pocket. The key to maximizing the tax benefits of leveraging debt is to...
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