Investment interest is interest that is paid on money borrowed to buy or carry property held for investment. Taxpayers with investment interest expense that exceeds investment income should see a professional tax preparer.
Interest that cannot be deducted includes:
- Interest on car loans where the car is used for nonbusiness purposes
- Other personal loans
- Credit card investigation fees
- Loan fees for services needed to get a loan
- Interest on a debt the taxpayer is not legally obligated to pay
- Finance charges for nonbusiness credit card purchases
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