If you have a margin account, purchase taxable securities as investment interest, and you have or will pay the margin interest in 2017 or applicable tax year, you can deduct the interest expense.
Where to enter Investment Interest expense:
- Federal Taxes
- Deductions & Credits
- Under Retirement and Investments
- Investment Interest Expenses (See Photo)
You can only deduct the portion that was used for investment purposes only. If you use any of the funds for personal use e.g. towards home-improvements, down payment on car, etc. you may not deduct the interest expense allocated for personal use.
To learn more about investment expenses, please read Pub 550 for further details. Especially if you have to allocate your investment expense. - https://www.irs.gov/pub/irs-pdf/p550.pdf
