Borrowing to invest
Question: In the next couple of weeks I will be receiving $5000 cash as a gift. What I would like to do is take the $5000, pay down my mortgage, and then borrow $5000 to invest. Essentially I want to deduct the interest costs on the $5000 loan.
What do I need to do in order to be able to deduct the interest on my taxes? Can I just use my personal line of credit to make the investment or do I need to get a special type of loan? Your comments would be most appreciated. – J.M.