What type of interest is deductible on my tax return?

Interest can generally be grouped into the following categories, mortgage, investment, business, education and personal. Except for personal interest, all other types may be deductible to some degree.

1. Mortgage interest. Interest on your first and second residences and home equity loans is deductible as an itemized deduction. Please call us for additional information on what qualifies as a personal residence
2. Investment interest. To the extent that you have investment income, the interest costs associated with that income might be deductible as an itemized deduction. The interest would not be deductible if it was related to tax-exempt income
3. Education interest. A deduction is allowed up to $2,500 of interest paid on qualified education loans. For college and vocational school expenses. The deduction is available on interest for the benefit of the taxpayer or their dependent. The amount of the deduction can be limited based on your level of income
4. Business interest. Interest paid in relation to you trade or business is fully deductible. Interest related to the home office deduction may also be deductible as a business expense