Please answer in simple terms. I used the margin loan to purchase stocks. Do I have to pay off the margin loan before the end of the year to deduct the interest?
2007-11-21 15:31:01 · 3 answers · asked by Yardbird 5 in Business & Finance ➔ Taxes ➔ Other - Taxes
Do I have to pay off the margin loan before the end of the year because the interest amount was simply added to my margin balance?
2007-11-21 15:40:51 · update #1
It's deductible but only to the extent of your investment income and only if you itemize. You don't have to pay off the loan to take the interest deduction. But you must have actually paid the interest in 2007 to take the deduction.
2007-11-21 17:03:58 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
It is deductible in the year incurred. You would list this under investment interest expenses as an itemized deduction subject to IRS form 4952 limits.
2016-05-24 23:41:58 · answer #2 · answered by karin 3 · 0⤊ 0⤋
Yes you have to pay Int, if you want to take deduction. Or deduction can be taken, only for paid interest.
2007-11-21 16:18:43 · answer #3 · answered by sukhvir p 1 · 0⤊ 0⤋