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Where do i enter interest income expenses under deductions so i only pay the tax on full amount earned not whats on 1099-INT i.e. i borrowed at 3% and loaned at 12%
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Form 1099-INT must be reported as received. See: Where do I enter Form 1099-INT?
Whether this will be offset by an interest expense deduction will depend if you itemize your deductions or claim the standard deduction. See: How does the Standard Deduction differ from itemizing deductions?
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Kathryn thanks for the response but i know how to enter the 1099-INT interest income....the problem is that the 1098 that i get from my HELOC institution doesn't qualify as a deduction for me because i didn't use that money on my proeperty. I loaned it to someone else who gave me a 1099-INT so now i need to find how to deduct the expense or the interest i was charged from my financial institution so i only pay taxes on the gains not gross gains. I do itemize but cant find where i would enter this
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I understand what you mean, but unfortunately, the HELOC interest would not qualify.
While the interest received is income, the interest spent is not deductible.
You may be thinking of Form 4952 for investment interest expense, but the instructions state in part:
Investment interest expense doesn’t include any of the following.
• Personal interest under section 163(h), including qualified residence interest.
For the non-qualified residence interest, any deduction would be limited to net investment income.
To see more about this as it pertains to Net Investment Interest Income, see: What is Form 4952: Investment Interest Expense Deduction.