Investment Interest Expense

[cookm716]

I have investment interest expense that is less than my net investment income for the year and TT enters it and allows full deductibility.  The interest was from a margin loan I took out to bridge between purchase and sale of primary residence.  It was not to purchase securities.  Am I right to take the deduction given this purpose?

[MinhT1]

In fact, all margin loans on your brokerage account are used to finance the purchase of securities and are guaranteed by the securities in your account. 

So margin interest is deductible.

What you did was to withdraw your excess cash from your brokerage account to bridge the real estate loans.

[cookm716]

Thank you for your reply.  I also went back and read IRS form 4952 a little more closely.  As I was investing in a property that I expect to recoup a gain from in the future, that seems to meet the criteria.  Again, thank you.