### Question
How is the term personal interest defined?


### Answer
The term **personal interest** is defined in *26 U.S.C. § 163* as the following:

> any interest allowable as a deduction under this chapter other than—


(A) interest paid or accrued on indebtedness properly allocable to a trade or business (other than the trade or business of performing services as an employee),


(B) any investment interest (within the meaning of subsection (d)),


(C) any interest which is taken into account under section 469 in computing income or loss from a passive activity of the taxpayer,


(D) any qualified residence interest (within the meaning of paragraph (3)), and


(E) any interest payable under section 6601 on any unpaid portion of the tax imposed by section 2001 for the period during which an extension of time for payment of such tax is in effect under section 6163

#### Citation:
  - *26 U.S.C. § 163*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VI-ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS**

