I used the proceeds from a whole life insurance policy loan
to invest in real estate. The policy was paid up and cashed in and the cash
surrender value was reduced by the accrued interest on the loan. 1. Since the proceeds of the loan were used
for investment is the interest deductible as investment interest? Is the loan interest added to basis to reduce
the taxable portion of the gain on the 1099R? Would the answer change if a separate check was used to pay the interest expense?
