The Investment Interest Expense Deduction is what you appear to be describing. Generally, interest incurred on loans used to acquire property held for investment can qualify for this deduction. Common types of investment property include:
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Stocks: Both individual stocks and mutual funds or ETFs that are held in a taxable brokerage account.
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Taxable Bonds: Interest on loans to purchase taxable bonds.
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Other Income-Producing Property: This can include real estate held for investment (not personal use or rental property that's considered a "passive activity") or other assets that produce investment income like interest, dividends, annuities, or royalties.
This deduction is limited to your Net Investment Income, which includes taxable interest, ordinary dividends, annuities, royalties, and net short-term capital gains.
As an example, let's say you pay $700 in investment interest expense in a year.
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If your total investment income (interest, ordinary dividends, short-term gains) for that year is $500, you can only deduct $500 of the interest. The remaining $200 of disallowed interest can be carried forward to future years.
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If your investment income was $1,000 instead, you could deduct the full $700.
Further, this deduction can only be taken if you itemize your personal deductions. It is a deduction that appears on Schedule A, Itemized Deductions. If you otherwise would take the standard deduction, you may not see any tax benefit.
These articles have additional useful information on this topic:
What Are Deductible Investment Interest Expenses?
Standard Deduction vs. Itemized Deductions: Which Is Better?
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