Advertising Tax Benefit

Answered by:

Question:

Isn't there something that states you should not advertise tax benefits or deductability in an advertisement without disclosing that they should consult a tax advisor? If so does it only apply to specific product lines (i.e. deposits, loans, IRA/retirement accounts)?

Answer:

Section 226.16(d)(4):Tax implications. An advertisement that states that any interest expense incurred under the home equity plan is or may be tax deductible may not be misleading in this regard.<?i>

Here in the Commentary to this section:3. Statements of tax deductibility. An advertisement referring to deductibility for tax purposes is not misleading if it includes a statement such as “consult a tax advisor regarding the deductibility of interest.”

First published on BankersOnline.com 8/04/08