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Get your taxes done using TurboTax
You can elect to treat your capital gain and qualified dividends as investment income, which means they will be taxed at your normal federal income tax rates, as opposed to the usually more favorable capital gains tax rate. If you do this, however, you can then deduct your investment interest expense against the elected investment income. This will reduce your income so it may reduce your income tax, as it appears it has in your case.
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‎April 4, 2022
1:13 PM