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Student loans paid with pre-tax $

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  • Student loans paid with pre-tax $

    I am sure this is a topic that has been discussed in the past.  I am wondering if there is anyway at all to pay student loans back with pre-tax dollars.  I am an independent contractor and was thinking if I refinanced with a private loan company would I then be able to claim this as a business expense.

  • #2
    Sure if you could find someone to finance at a reasonable cost and take that risk of using like that, but since money is fungible its probably doable. Rates are terrible in the business loan department though, makes it less attractive.

    A Heloc if you had that kind of room would probably be a better trade but obviously comes with its own specific risks you'd have to be comfortable taking.

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    • #3




      I am sure this is a topic that has been discussed in the past.  I am wondering if there is anyway at all to pay student loans back with pre-tax dollars.  I am an independent contractor and was thinking if I refinanced with a private loan company would I then be able to claim this as a business expense.
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      I suppose you are asking if you can deduct the interest payments as a business expense, correct? Debt repayment is never deductible. So if you borrow money to use in your business (have a legitimate business need) and your business is later able to pay you enough to put on your student loans, yes, possible. Just be aware of the step transaction doctrine.
      Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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