I have a Securities-Based Loan that I will use 100% for a private investment that will generate taxable income. I will not receive a 1098 from my brokerage. First, is the interest on the Securities-Based Loan deductible against investment income? Second, if it is deductible against investment income, how would I file this and what information would I need? Third, does the type of investment income (dividends, interest, etc.) matter on whether it can be deducted against this income? - understanding that it can only possibly be offset to the extent there is income that meet or exceed the loan interest.
