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Can the interest charged on your loan principal be deducted for tax purposes?

Zach Chandler

in Student Loans

1 answer

1 answer

Melissa Norris on April 6, 2019

Varies in the jurisdiction in which the loan was taken out and the purpose of the loan. Generally, if a loan is taken out to benefit a business, the business may be able to claim the interest on that loan as a business expense and offset against income. A loan taken for personal reasons, however, does not fit that profile. The interest on a loan taken for personal reasons, and the interest of the credit cards, which are basically the same thing, are not tax deductible. In the united States of America, the interest you pay on the mortgage of your principal residence could be written against income. That may not be true. If you have any questions about this, I recommend consulting the tax code of your country, or of a competent tax lawyer.

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