HELP Schedule B?

Question

Please tell me if any of this interest would be on schedule B.
*Investment interest on stock margin account
*Auto loan interest (auto was paid for by a home equity loan on residence)
If these don't go on Schedule B would either of them go on Schedule A? Thank you!!

Answer 1

Schedule B is for interest income. Interest expenses go on Schedule A.

Margin account interest paid is deductible but only up to the income earned on the investment. For buy and hold investments such as stocks you may have to carry the interest expenses forward until you have a recognizable gain.

Interest on a HELO taken out on your principal or second home is deductible on up to $100k in principal where the proceeds are not used for improvements on the property so unless you bought a really expensive car that generally would be deductible.