investment

[BJ29KEEUYLGG4U]

I have investment interest deduction for loan on raw land for speculation that keeps rolling to the next year.  I also sell stocks each year in a company which gives me a capital gain.  Your help button says that I can not do capital gain and use the interest to off set the gain.  It also says Quick Books will ask me if I wish to do that.  It does not ask me.  I would like to use up some of this  built up investment interest to off set these gains. Thanks

[JotikaT2]

You would need to make an election to have your capital gains treated as investment income in order to be able to offset it against your investment interest deduction.

But be aware, if you make this choice, your capital gains in the future would be taxed at ordinary tax rates as opposed to using the preferential capital gains rates currently in effect.

Investment income & expenses publication