Question

Which type of interest is not deductible on Schedule A?

A: Home Equity Line of Credit

B: Mortgage Interest

C: Investment Interest

D: Student Loan Interest

Answer 1

Investment interest is a non-deductible item in schedule A.

If you borrow money and purchase some stock in your friend's company or purchase some property for investment purchase. The interest that you will be paying on the borrowed money is ‘investment interest expense’. As per the guidelines of the IRS, the investment interest expense is not qualified for the deduction under schedule A.

Interest expense which is included under schedule A is Mortgage interest expense, interest paid n the student loan, non-farm business interest, etc.