Based on this, see HERE see Section 8 through 13 of what goes into the category of net investment income, all capital gains both short term and long term go into the category of net investment income as well as all dividends both qualifying and nonqualifying. So in your case, yes all this income falls into this category. And yes, the margin interest expense can be carried over to the following year for any excess over the net investment income. So in your example, whatever the combination is for LTGC and STCG, QD and Non-Qualifying Dividends, whatever your margin interest expense is in excess of that, it may be carried over ONLY if you itemize. Can you clarify what you mean by NIL?
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