Private loan question

Forum|Forum|7 years ago
June 1, 2019
1 reply
1 view

If I pay interest on a Private loan that I took out several years back for personal expenses where do I enter this??

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Best answer by AnthonyC

Interest on a private loan for personal expenses is not deductible, so it will not go anywhere on your return. Only interest for items such as mortgages, business/investment expenses, or student loans are deductible

See excerpt and link below for further information:

Types of interest not deductible include personal interest, such as:

Interest paid on a loan to purchase a car for personal use.
Credit card and installment interest incurred for personal expenses.
Points (if you're a seller), service charges, credit investigation fees, and interest relating to tax-exempt income, such as interest to purchase or carry tax-exempt securities

https://www.irs.gov/taxtopics/tc505.html

AnthonyCAnswer

Level 12

See excerpt and link below for further information:

Types of interest not deductible include personal interest, such as:

Interest paid on a loan to purchase a car for personal use.
Credit card and installment interest incurred for personal expenses.
Points (if you're a seller), service charges, credit investigation fees, and interest relating to tax-exempt income, such as interest to purchase or carry tax-exempt securities

https://www.irs.gov/taxtopics/tc505.html