The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: interest deduction||Date: 11/7/1999 10:01 PM|
|Author: TMFTaxes||Number: 20656 of 122503|
<<Needing to close escrow quickly in crazy SF market I bought a house this year by margining stock portfolio. Margin
interest exceeds dividends earned on stock. Can I deduct margin interest as mortgage interest?>>
Nope...unless your broker has a mortgage agains the property, you're not paying mortgage interest. And that interest isn't deductible as such.
Hopefully you didn't keep this relationship up too long. By now, you should really have a mortgage loan on the property...and you were simply using the margin loan as a "bridge" loan in the meantime.
But deductions for margin interest are very specific. You can read more about this in the Taxes FAQ area. And since your principal residence is generally not considered "investment", you may find that your interest is completely non-deductible personal interest.
Sorry...but you really should have a tax pro with experience in this area look at this entire transaction ASAP.
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