In the tax business, we see a lot of people trying to take deductions for expenses that are not actually considered deductible by the IRS. One of the most common expenses that people struggle with is interest. There are many different types of interest, and many people have a difficult time figuring out the interest is deductible and the interest that is not. This article is going to clear this up. There are only three types of interest that you can take as a deduction on your personal tax return.