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posted Jun 3, 2019 10:48:37 AM

Borrowed against a regular investment account to purchase a home. Loan repayment with interest is on a regular monthly basis, is the interest deductible?

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Level 15
Jun 3, 2019 10:48:38 AM

For a mortgage loan to be deductible it has to have the home pledged as security for the loan.

If the investment does not have a lien in the home then it is not deductible mortgage interest.

I took a loan from a 401K to but a home and due to the 401K loan not being secured by the home it was not deductible.