Buy stock on a credit card?

Question: Are there any circumstances where financing a common stock purchase with non-deductible debt, such as credit cards and lines of credit, is fully tax-deductible? – M.C.

Answer:

Technically, the interest on most loans that are incurred for investment purposes is tax deductible. There are some grey areas, however borrowing against a line of credit is generally regarded as a legitimate source of financing for tax purposes, as long as the money is invested in securities that generate income or could do so in future. Common stock in publicly-traded companies usually qualifies.