Investment interest is a strange animal compared to other interest payments. Most interest is deductible or not deductible; investment interest is deductible sometimes. If you have investment income (interest and dividend income, capital gains if you elect to treat as investment income), you can take investment interest as an itemized deduction up to the amount of your investment income; the rest will be carried over until there is investment income to offset it.
Here is an article by Kay Bell in LoanShoppers.net about investment interest:
http://www.loanshoppers.net/how_to_deduct_interest.htm
If you have any questions, call me at 818-317-6035 or email me at bstonercpa@sbcglobal.net and I will try to answer them.
Tomorrow we can talk about business interest.
You can count on us to count for you!