Yes, but the next paragraph in that article says:
For example, say you borrowed $20,000 to buy a 10 percent stake in a friend's car wash. That stake is certainly an investment, but unless you were there washing cars (or doing some other work), it's a passive activity, because you're not materially involved running the business. Thus, you couldn't deduct the interest on the $20,000 loan as investment interest. However, you could use the interest to offset income you received from the passive activity.
I understand that this can not be a Schedule A deduction, but this article seems to say it can come off on Schedule E.
