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Subject Author Date
Interest on a loan from a private individual to fund education msimonkey 12-22-2006
Posted by msimonkey on December 22, 2006, 1:34 am
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 A wealthy private individual loaned me some money to finance
my education in college. Can this loan be deducted on my
taxes? I have since graduated school and am currently
working for him.

Thanks!

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Posted by Phil Marti on December 23, 2006, 1:47 am
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> A wealthy private individual loaned me some money to finance
> my education in college. Can this loan be deducted on my
> taxes? I have since graduated school and am currently
> working for him.

As long as the private individual is not a relative, the
loan source is immaterial. See Publication 970.

--
Phil Marti
Clarksburg, MD

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Herb Smith on December 23, 2006, 1:47 am
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msimonkey wrote:

> A wealthy private individual loaned me some money to finance
> my education in college. Can this loan be deducted on my
> taxes? I have since graduated school and am currently
> working for him.

No. Loans are not income, nor are they deductible. The
interest you pay on such a "private" loan does not qualify
as an educational loan, so is not deductible.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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