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June 5, 2019
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Can I deduct any interest payments on a loan secured by stock holdings?

  • June 5, 2019
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Best answer by RichardG

That depends on what you bought with the loan proceeds.  If you used the loan to purchase more stocks or other investment assets, the interest is deductible as investment interest.  If you spent the money on personal expenses, a home remodeling project, for example, the interest is not deductible.

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RichardGAnswer
Employee
June 5, 2019

That depends on what you bought with the loan proceeds.  If you used the loan to purchase more stocks or other investment assets, the interest is deductible as investment interest.  If you spent the money on personal expenses, a home remodeling project, for example, the interest is not deductible.