Hi,
Through my brokerage account, I paid interest to invest in stocks and options. My short term gains exceeds the investment interest. When filing on turbotax, it looks like this investment interest isn't deductible on this capital gain by default. However, I can deduct on the non-qualified dividend income that I earned.
My questions are:
- Let's say my investment interest is $2,500 and my dividend income is only $500. Can I deduct $500 this year for 2024 taxes and rollover the investment expense of remaining $2,000 to next year?
- I beleive turbotax allows me to deduct this investment interest on the capital gains also. A quick YouTube search also told the same But it is not clear, which way is beneficial. How do I determine which route I should pick?
- What is the rationale to not deduct investment interest on the capital gains? Because I literally used the margin interest to buy stocks and indeed made directly from that money in the same account.
