Generally, no, personal loans are not tax deductible. However, there are some cases when the interest on a personal loan—but not the principal repayment—might be deductible, depending on what the loan was used for.
You could potentially deduct your personal loan interest if you use personal loan proceeds to fund business expenses, or if you use the loan to buy investments such as stocks or bonds in a taxable brokerage account (although borrowing money to invest is almost never a good idea).
Are personal loan rates going down?
