It is a fact that everybody wants to stretch and maximise their savings. Maximising tax deductions through the use of interest deductions is one way to lessen your tax liability. Whether you’re a student that wants to save money or a businessman that wants to make more profit. Remember the basic principle: interest can be used as a tax deduction if borrowing for an income producing investment. So how do we know if the interest in our loans is tax deductible or not?