Loan/Margin Interest

5 replies
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I have a customer that borrowed against their investments. They paid back Loan/Margin Interest, is this tax deductible in any way? Where do I enter if so?

ProSeries Professional

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Accountant-ManAnswer

Level 13

What was the money used for? The interest tracing rules require that the use of the money determines its deductibility--even if secured by investments, if you used the money to, EG, buy a car, it is personal interest and non-deductible.

** I am "Elevating with Intention!"

sjrcpa

Level 15

What did they do with the borrowed money?

The more I know the more I don’t know.

Just-Lisa-Now-

Intuit Community Champion

There is a place to enter margin interest on the dividend worksheet that you get when you double click on an entry line

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

sjrcpa

Level 15

But that is only applicable if the $ was used for investment. Hence my question.

The more I know the more I don’t know.

Just-Lisa-Now-

Intuit Community Champion

with limited information, I was just giving them a spot for it. Ive only seen Margin Interest shown on Consolidated 1099 from a brokerage.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

Accountant-ManAnswer

Level 13

What was the money used for? The interest tracing rules require that the use of the money determines its deductibility--even if secured by investments, if you used the money to, EG, buy a car, it is personal interest and non-deductible.

** I am "Elevating with Intention!"

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