Personal Loan Tax Deductions: Can I Get a Tax Deduction on Personal Loan Interest?
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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
Is Personal Loan Interest Tax Deductible?
Types of Personal Loan Interest
Simple interest Fixed rate interest Variable rate interest
Simple Interest
Fixed Rate
Variable Rate
Do I Have to Declare a Personal Loan on My Taxes?
Exceptions to Personal Loan Tax Deduction Rules
Business expenses Qualified higher education expenses Taxable investments
Business Expenses
Student Loan Expenses
Taxable Investments
Loans that Are Tax Deductible
Mortgages
Second Mortgages
Business loans
How Do I Report Interest Paid on a Personal Loan?
How Does Canceled Personal Loan Debt Affect Your Taxes?
The Takeaway
Frequently Asked Questions
About the Author
Kelly Boyer Sagert is an Emmy Award-nominated writer with decades of professional writing experience. As she was getting her writing career off the ground, she spent several years working at a savings and loan institution, working in the following departments: savings, loans, IRAs, and auditing. She has published thousands of pieces online and in print.
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