When is a margin loan deductible?
January 18, 2002
Date: Wed, 26 Dec 2001
To close on the purchase of our new home before selling our existing home, we obtained the cash for closing by taking a margin loan from our broker against our stock assets, then repaid the loan a few months later after our existing house sold. Is the margin interest from this loan deductible like our mortgage interest? If so, how do we report it?
Date: 26 Dec 2001
I'm sorry, but in order to be tax deductible, the home acquisition mortgage must be secured by a principal residence or a second residence. The interest for your margin loan is non-deductible personal interest.
For answers to new questions, subscribe to our newsletter, Michael Gray, CPA's Tax & Business Insight by filling out the form below.
Home Newsletter Archive Introducing Michael Gray, CPA Articles Tax FAQ Need Help? Other Links