Need cash? Borrowing money won’t your increase income.

Borrowing in any form—as a home equity loan, from your 401(k) plan, or against your life insurance policy—is a way to raise cash without creating taxable income. So if you need money to pay for a child’s wedding, your 25th anniversary cruise, or any other major expense, a loan may be the way to finance it. Whether you can deduct the interest on loan repayments depends on the reason for the loan as well as its source. Just be sure that your budget can accommodate loan repayments on this debt.