So, I bought a business a year or so ago and it's doing fairly well. I have a reasonable chunk of profit I'd like to use to pay down some debt, but I'm not sure whether it is better to pay down my business debt or mortage. The mortgage is obviously non deductible, but to pay it off I would need to pay myself a dividend from the company and pay the tax on that before I can use it to pay off my mortgage. The business debt is at a higher interest rate, but it's deductible. It's also interest only but it's a lot bigger amount than my mortgage so I'd like to reduce it.
Thoughts?
Thoughts?