Can I deduct my investment interest?

You can use certain types of debt as an investment tool.

If you borrow money to make an investment, such as buying stock on margin, you're generally able to deduct any interest you incur, to the extent that it offsets investment income. Interest payments in excess of investment income can also be carried forward, in hopes of offsetting future income. This calculator can help you manage the use of debt as an investment tool, and take advantage of current deductibility laws and limitations.