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Tax Deductions
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Re: Health insurance deduction , HELOC deduction


Health insurance premiums count as part of your medical expenses, and in the aggregate, medical expenses are deductible to the extent they exceed 10% of your adjusted gross income. If you are self-employed, however, you might be able to claim your health insurance premiums as an "adjustment to income: instead of as an itemized deduction, which would make the premiums paid 100% deductible.

And for the HELOC, if you borrow money to open a practice, any interest paid on the HELOC would be deductible against the practice income. That being said, if you have money sitting in a money market account earning .1% interest that you shouldn't need for the long-term, and you would still have sufficient emergency savings if you use that money to open a practice, why borrow money at 3% while money is sitting in the money market earning a fraction of that? Even with the tax savings, you'll end up behind financially by doing so.

Borrowing money to open a practice is a fine thing to do if that's the only, best, or most convenient source of financing available. Borrowing money for the primary reason of getting an interest deduction on your tax return isn't always financially prudent.

There are a lot of variables to consider before deciding to use personal funds or to talk a loan to open a practice. I recommend you set up a time to speak with your CPA or financial adviser.

Hope this answers your questions.

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