mushroom51
Junior Member
What is the name of your state (only U.S. law)? Michigan.
What are the tax effects of donating borrowed money secured by real estate. Simply put, If I am an owner/user of real estate and borrow money against it and donate the proceeds to a non-profit organization, where does that leave me tax wise. I know that the loan proceeds are not taxable. I know that the mortgage interest is deductible (for now). Are the donated funds deductible in whole or only as the proceeds are repaid.
What are the tax effects of donating borrowed money secured by real estate. Simply put, If I am an owner/user of real estate and borrow money against it and donate the proceeds to a non-profit organization, where does that leave me tax wise. I know that the loan proceeds are not taxable. I know that the mortgage interest is deductible (for now). Are the donated funds deductible in whole or only as the proceeds are repaid.