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Is the interest one pays on a personal loan a tax deduction?

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Is the interest one...

Is the interest one pays on a personal loan a tax deduction?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

I am in the process of taking a personal loan to pay for repairs on repairs to my apartment units. The interest I am paying each month - can I use that interest as a tax deduction on my taxes for next year?

Submitted: 5 months ago.Category: Tax
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11/21/2017
Tax Professional: Barbara, Enrolled Agent replied 5 months ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 5,790
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Based on the information you provided, it appears that the personal loan is for repairs to your rental properties.

If that is the case, the interest would be deductible because it is incurred to produce rents.

See the following:

https://www.irs.gov/taxtopics/tc

https://www.irs.gov/publications/p527

Please let me know if I can assist you further.

Thank you and best regards,

Barb

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Tax Professional: Barbara, Enrolled Agent replied 5 months ago

Also, here must be clear evidence of how the loan proceeds were used. It is wise not to commingle the loan funds with personal funds.

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