investment interest

investment interest

An IRS phrase meaning the interest incurred on debt for an income-producing property. Investment interest is deductible only to the extent of investment income; you can't use investment interest to shelter other income.Unused investment interest may be carried over to subsequent years.

Investment Interest

Investment interest is interest paid on money borrowed to purchase or hold investment property. Investment interest is deductible as an itemized deduction to the extent of net investment income.