Your portion of the interest the cooperative pays is your deduction, but the interest on your loan to purchase the stock may or may not be a deduction depending of the rules of the corporation as well as state/local law.
“A qualified home includes stock in a cooperative housing corporation owned by a tenant-stockholder. This applies only if the tenant-stockholder is entitled to live in the house or apartment because of owning stock in the cooperative.”
“In some cases, you can't use your cooperative housing stock to secure a debt because of either:
Restrictions under local or state law, or
Restrictions in the cooperative agreement (other than restrictions in which the main purpose is to permit the tenant- stockholder to treat unsecured debt as secured debt).
However, you can treat a debt as secured by the stock to the extent that the proceeds are used to buy the stock under the allocation of interest rules.”
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