E209: How to Deduct Policy Loan Interest from Your Taxes and Save Money

In this episode, Nate shares when and how to deduct interest paid on life insurance policy loans. Many assume it’s not possible, but under certain circumstances, the interest can become a business expense.

Learn the critical details that make policy loan interest tax deductible when used for specific purposes. This unique strategy allows you to earn tax-deferred growth in your policy while writing off interest costs.

Get clarity on ideal scenarios to maximize deductions, like using separate policies for personal and business needs. Plus, you’ll hear tips to simplify accounting and create a clean paper trail. Whether commingling funds or segregating accounts, you’ll learn straightforward methods to track deductible interest.

Let this benefit-driven episode open your eyes to little-known ways to leverage policy loans.

Topics Discussed:

  • Unlock Tax Savings: How policy loan interest can be deductible
  • Revealed: Unique tax strategies exclusive to life insurance
  • Myths Exposed: Common myths about deducting policy loan interest
  • Uncover When: Scenarios where interest write-offs apply
  • Demystify How: General provisions that enable deductions
  • Clarify Accounting: Simple accounting tips to maximize deductions
  • Illuminate Policy Types: The power of segregating policy types
  • Elucidate Records: Maintaining clean paper trails for transparency
  • Shed light: Managing commingled policy uses
  • Make it Simple: Treating loans as interest-only for simplicity
  • Managing Tax Burdens: The advantages of tax-deferred growth
  • Use Loans for Advantage: Surprising ways to leverage policy loans

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