Deb Johnson needed $10,000 to make a down payment on her house. She instructed her broker to sell some stock to raise the $10,000. Deb's cost of the stock was $3,000. Based on her broker's advice, instead of selling the stock, she borrowed the $10,000 using the stock as collateral for the debt. 

Do you agree or disagree with the broker's recommendation? Explain your response. Discuss the tax implications of Deb Johnson's actions.

Answer rating: 100% (QA)

I agree with the brokers recommendation as it may have some financial and tax benefits for Deb Johns... View the full answer