be careful. under the tax law there are tracing rules for personal loans. this means that the money you borrow must be directly traceable to the purchase of those stocks. Any intermediate use may prevent you from deducting the interest as investment interest and personal interest is not deductible. there is also another quirk to the deduction of investment interest. generally, the deduction is limited to the lesser of the interest or ordinary investment income - short-term gains, nonqualifying dividends, interest income, etc. however, the taxpayer can make an election to use long-term-gains and qualifying dividends if needed. these the loose their tax-preferred rates. So it takes a careful review to determine if such an election is beneficial
