I have capital gains and I paid margin on stock sales in the same fidelity account. When I import my 1099-MISC, margin interest paid is not deducted from total gain.

I have capital gains. I also paid margin interest when I borrowed money from Fidelity in the same account. However, when I import 1099-MISC/B, the margin interest is not deducted from total capital gain.

What am I missing?

1836

New Member

Jun 1, 2019 12:43:18 AM

Margin interest is not deducted from capital gains generated in the account. It's an itemized deduction and can only be deducted if your total itemized personal deductions exceed your standard deduction.

Another limitation on this deduction would be the fact that it can only be deducted up to the amount of investment income you have, that is taxed at ordinary income rates, not lower capital gains rates.

You may be able to adjust your investment expenses upward for this interest if you complete the AMT interview under other Tax Situations.

Why sign in to the Community?

I have capital gains and I paid margin on stock sales in the same fidelity account. When I import my 1099-MISC, margin interest paid is not deducted from total gain.