Interest is deductible for tax purposes under the following conditions:

1. The interest must be incurred under a debt obligation and used in the production of income.
2. The debt obligation must have been incurred in borrowing money, which is either used during the year to produce income or used to acquire an asset that is used in the production of income.
3. If the debt obligation was not used for borrowing money, it must still have been incurred in the production of income for it to be deductible.