Deducting interest paid on a liability asset account

[allehons]

I took out a loan against my accounts at Morgan Stanley (an LAL) to purchase my condo that is my primary residence.  I have a statement showing the total amount of interest paid, but it is not in the official format like I used to get when I had an official mortgage.  My financial guy at MS says I should be able to deduct the interest, but just keeps telling me to ask my "tax guy".  Since I do it all on my own using Turbotax I am reaching out to this community to ask if anyone has done this.  I can manually enter the amount but won't it also ask who it was paid to etc??  Morgan Stanley would be the who I guess. Thanks.  

[Mike9241]

since the house is your residence, margin loans to purchase the home would be a personal loan, and the related interest is not deductible. 

it certainly is not deductible as mortgage interest on schedule A because a requirement to be mortgage interest is that the residence must be security for the mortgage which in this case it is not. Some may argue that it could be deducted as investment interest on schedule A viewing your principal residence as an investment. I don't agree with that position.  

here's a link to a similar issue

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/i-have-a-substantial-... 

[Vanessa A]

No, you cannot deduct this interest.  In order to deduct the interest on your home it would have to be a mortgage loan where the proceeds of the loan are used to buy, build or substantially improve the home in which it is secured by. Since this loan is not secured by your home, you cannot deduct the interest as a mortgage interest deduction expense.  You would not enter it on your return as it would be treated like any other personal loan.