Tuesday, November 5, 2013

20% cost of my home was financed thru personal installment loan. is the interest tax deductible? and Mick Loan

20% cost of my home was financed thru personal installment loan. is the interest tax deductible?



80% of the cost price was financed thru mortgage loan. So I have two notes, mortgage and installment loan. Can the interest on the installment loan tax deductible? If so can you please also provide reference to the source preferably IRS.


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Answer by bostonianinmo
By definition a personal loan is not secured by anything but your signature. If that is the case, the interest on it is NOT deductible. If the 20% loan is actually a mortgage loan, i.e. it is secured by the property, then it would be deductible.


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