Basic Federal Income Taxation: Deductions: Interest Deductions

This lesson will introduce users to the ways in which deductions can be taken for interest payments. Questions cover Internal Revenue Code section 163.

Learning Outcomes

On completion of the lesson, the student will be able to:

1. Distinguish the different treatment of business, investment, and personal interest under § 163.
2. Examine the extent to which investment interest is deductible under § 163(d).
3. Discuss the limitations on the deduction of personal interest.
4. Apply the rules for deducting student loan interest under § 221.
5. Evaluate the extent to which home mortgage interest is deductible under § 163(h).