So last year I took a TSP (thrift savings plan) loan out of my TSP retirement account to fund some real estate transactions. The loan from my TSP gets paid back to my account and it pays the account 2% interest ((or I pay 2% on borrowing the money from the retirement account). This money is taken out of taxed income on my W2; shouldn't that mean that I can claim that interest on my taxes as a business expense?
I don't thik that sounds relistic because you are paying yourself, and therefore it is not really interest.
I'm going to agree with Joel on this one, the only person you are paying interest to is YOURSELF. And are you sure it is post-tax? My understanding is that TSP contributions are pre-tax, I know ours are.
The Traditional TSP, which most people have, is pre tax (tax deferred until withdrawel) they do have the new ROTH TSP which is post tax, I don't even know if you can take a loan out on that.
Oh yeah, I did hear some of our friends squawking about the new Roth TSP. But still, interest is returned back to your account, so trying to deduct it on your taxes seems sketchy.
Contributions are pretax, loan repayent is post tax.
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