margin interest expense to offset qualified dividends directly

[jaywalker]

Instead of margin interest expense(investment income expense) offsetting my income via itemized deduction, I wanted to see if its possible to offset dividends directly.

So let's say if

my dividend is 10k,

my capital gains are 25k and

my margin interest expense is 8k.

Can I directly reduce my dividends(or my capital gains by 8k) by 8k and hence only have to show 2k in dividend(or 17k of capital gains).  I might not have enough in itemized deductions to reach the 24k threshold.

[NCperson · Accepted solution]

No

The margin interest is deductible as an itemized deduction only: you can’t net as you suggested

[jaywalker]

Thanks. 

Related to that. If I don't use my investment income expense this year to itemize my deductions, can I carry it over to next year?

[NCperson]

No