In Federal Income Tax
Can I deduct interest expenses?
If you are itemizing your deductions, rather than simply taking the standard deduction, you can deduct certain interest expenses. Principally, the types of interest you can deduct include:
1. Interest on home mortgages.
2. Points related to home mortgages.
In addition, you may be able to deduct certain interest expenses related to student loans, loans taken for a business purpose and loans related to rental property. However, you generally cannot deduct personal interest, which includes things like the interest on credit card or car loan payments.