Did you know that you can deduct certain types of interest expense? It’s true, though rules and limitations apply. For example, mortgage interest may be deductible if you itemize rather than claim the standard deduction, subject to debt limits. Investment interest can also be deductible, but the deduction is limited to net investment income, which doesn’t include long-term capital gains or qualified dividends. Student loan interest offers an above-the-line deduction, but it’s capped and phased out at higher income levels. And new for 2025 through 2028, auto loan interest may be deductible, subject to limits. Contact us for help determining which interest deductions you may qualify for.
