Interest paid on a margin account is tax deductable. Check schedule 4 where interest, dividends etc. are itemized and there is a line there that should not be hard to find. Also, if you have a safety deposit box that is deductable too. However, to be correctly legal, you must keep investments inside it. Most people I know keep bonds there for safe-keeping. I mention the correctly legal warning because I also know some who take the deduction without income bearing investments inside. So far, none have been challenged and had the deduction cancelled. Another angle I have used to deduct interest. I used cash from stocks sold to make a purchase. I then borrowed to buy the same stocks. That way the interest becomes tax deductable. All this is on the same schedule. Hope this helps. You can verify the margin/interest paid from the book that comes with your tax forms.