Thank you MIke,
Electing to use investment interest expenses (prior and current years) to cover long-term capital gains, despite the loss of favorable tax rates normally applied to long-term capital gains (LTCG), would seem to incur no Federal tax, 3.8% surcharge, or NY State/City taxes. If there is no annual limitation on the amount a filer can elect to cover LTCG or QD, the election could eliminate all that tax, which could be +/- 30%. The LTCG would not be subject to tax at the federal level, and that NY State/City would mirror the Federal tax treatment making it untaxed at each such jurisdiction? Does this sound accurate?
