Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Oct 29, 2019 10:03:59 PM

Can I claim interest paid on bank loan? My loan statement states to save the document for income tax purposes.

0 1 1571
1 Best answer
New Member
Oct 29, 2019 10:04:01 PM

Hello;

You can claim interest paid on a bank loan as long as the interest was incurred to earn investment income. The requirement of earning income generally means that the investments should be paying interest or dividends.  If an investment will never earn anything except capital gains, then the interest expense isn’t deductible.

Note: You can't claim the interest you paid on money you borrowed to contribute to a registered retirement savings plan.

Regards,  


 

1 Replies
New Member
Oct 29, 2019 10:04:01 PM

Hello;

You can claim interest paid on a bank loan as long as the interest was incurred to earn investment income. The requirement of earning income generally means that the investments should be paying interest or dividends.  If an investment will never earn anything except capital gains, then the interest expense isn’t deductible.

Note: You can't claim the interest you paid on money you borrowed to contribute to a registered retirement savings plan.

Regards,