Loan/Margin Interest

[judys3]

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?

[sjrcpa]

What did they do with the borrowed money?

[Just-Lisa-Now-]

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

[sjrcpa]

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

[Just-Lisa-Now-]

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

[Accountant-Man · Accepted solution]

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.