Lux Investing

Is the interest, on borrowed money used to invest in stocks, tax deductible in United States (NOT Canada)?

I'm planning to borrow money to invest into stocks. I want to know if the interest is tax deductible.

Public Comments

1. It is tax deductible as an expense, so yes.
2. It is deductible as margin interest, but borrowing money to buy stocks is a bad idea. The one exception is if the stock you are buying pays a dividend that exceeds the interest on your stock loan. Otherwise, the rates on stock loans can be high and they can issue a margin call and sell your stock if it goes down.