Ignoring The Tax Code

This is simply not true as Section 163 would limit any deduction for home equity debt at $100,000 of new debt and Section 264(a)3 would prevent the deduction altogether.

On page 158, MF101 has another faulty example where the borrower removes $100,000 of equity from the home. The book asks the question: "…borrowing wealth at 7.5% tax-deductible interest and investing at 7.5% compounding with no tax, what could you achieve by borrowing at 6% and earning 8% or better?

Summary on the lack of detail on the deduction of interest when
removing equity from a home to build wealth:

By not dealing with 264(a)3, the author of MF101 proves that she either doesn't know the code section exists or that she does and chose not to disclose it to readers. Both conclusions are bad for the reader as they are lulled into the belief that home equity debt is deductible when funding a tax favorable wealth tool such as cash value life insurance.

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