Which type of interest fees? On what type of loan are you paying interest?

Interest paid on business loans is generally deductible as is interest paid on qualified home mortgages and rental properties.

Interest paid on personal loans, such as personal auto loans or personal credit card interest, is generally not deductible.

If you're not self-employed, no, you can't deduct interest fees. According to the IRS, only a few categories of interest payments are tax-deductible:

• Interest on home loans (including mortgages and home equity loans)
• Interest on outstanding student loans
• Interest on money borrowed to purchase investment property
• Interest as a business expense

All other interest is considered personal interest, which includes interest charged on credit cards, auto loans, unpaid utility bills and late payment or underpayment of federal, state and local income taxes.

If you're self-employed, "Business interest," meaning interest paid on any loan taken out for business purposes, is considered a legitimate business expense, and that includes interest on credit cards. However, the debt must be related to a trade or business activity. You can't use your company credit card for personal expenses and then deduct the interest.