Deductions & credits

Interest from the Liquidity Access Line is only deductible on a tax return as an itemized deduction reported on Schedule A if the funds were used for investment purposes and then only up to the amount of your net investment income.

 

Since the funds were used to purchase a personal residence and not for investment purposes, the interest paid is not deductible.

Only interest on loans that were secured by the personal residence would be deductible on a tax return.