Yes, you can deduct the interest expense on a loan used to purchase stock.
To enter your investment interest expense in TurboTax Online (for TurboTax Online sign-in, click Here , then select "Take Me to My Return") or Desktop, please follow these steps:
- Once you are in your tax return, click on the “Federal Taxes” tab
- Next click on “Deductions & Credits”
- Next click on "jump to full list" or “I’ll choose what I work on”
- Scroll down the screen until to come to the section “Retirement and Investments”
- Choose "show more", then Investment Interest Expenses and follow the onscreen instructions
