topic Re: Margin Interest Deduction for Buying into LLC in Get your taxes done using TurboTax

Margin Interest Deduction for Buying into LLC

RobInCA — Tue, 10 Mar 2026 05:55:20 GMT

Hi,

I took a loan against my brokerage account to purchase a passive interest in a multi-member real estate syndication LLC. Am I able to deduct the full amount of the margin interest I paid as a business expense (instead of an investment expense)?

Thanks,

Rob

Re: Margin Interest Deduction for Buying into LLC

Mike9241 — Thu, 04 Aug 2022 02:13:00 GMT

Investment interest expense is tax-deductible in some circumstances, but not when used for passive ventures, such as investing in a business that the taxpayer owns, but does not actively manage. so in your situation, it retains its character as investment interest

Re: Margin Interest Deduction for Buying into LLC

RobInCA — Fri, 05 Aug 2022 18:40:56 GMT

Thank you for your reply.