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Can anyone tell me if I sell stock for a gain, can I offset this with the loss from margin interest paid?

Not directly.

You report your stock gain (or loss) on schedule D. That flows to the front page of your 1040 and becomes a component of your Adjusted Gross Income.

Margin interest is an itemized deduction, reported on schedule A. It reduces your AGI to reach taxable income. Margin interest (a particular kind of investment interest) can only be deducted to the extent you have investment income. Investment income typically consists of interest and dividends. Capital gains can be elected to be a part of your investment income, but by doing so, you lose the favorable tax rate for long-term capital gains. (I'm not sure if dividends also lose their favorable tax rate - I'd have to research that to find out.)

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