Is Your Interest Deductible?

Nobody wants to see interest charges on their credit cards or their loans… but you may actually be able to see some of it work for you when it comes to tax time. Some may be deductible on your tax return!

Whether interest is deductible depends on how you use the money you borrow. If you’re using the money to buy personal things like clothing or food, it’s not deductible. However, if you use the money to purchase something for your business or for investment purposes it may be deductible.

Here’s a test you can ask yourself: “Are you borrowing money to make money?”

Remember to always keep your receipts with dates and explanations of everything you want to claim as a deduction on your tax owing.