I have read IRS Publication 550 and believe I have deductible investment interest even though it is on credit cards, but I wanted to run it by the tax mavens here. I have incredibly high credit card limits and was always getting the 0% offers and putting the money in the bank to get the interest and paying it back before any interest was charged by the credit card companies.Now, given the interest rate environment, I have been getting offers only for 1.99% for the life of the loan or for six months to a year. I have an account through Ford I consider relatively safe (I can move money out on a moment's notice in case of imminent bankruptcy) that works like a money market account and pays interest at 5.54% currently. Technically the investment is buying notes from Ford Credit. Right now I have $80,000 borrowed on credit cards at 1.99% and parked in the Ford account paying 5.54%. I assume that the 1.99% I am paying on the credit cards is investment interest as I read Pub 550. Am I correct?Edgy(particularly with the IRS)
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