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I'm faced with a similar situation where I have received payments in lieu of dividends and have margin interest expense.  While trying to offset Payments in lieu of dividends against the interest expense by going through the 1099Misc form,  I didn't come across any questions other than the boxes to enter the amounts listed on the 1099Misc. 

 

Could you please advise again where to specify the information? I'm using the TurboTax delux version.