The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  https://boards.fool.com/as-it-happens-i-had-quite-a-large-short-term-34828469.aspx

Subject:  Re: Interest paid to broker on margin loan Date:  5/9/2021  8:05 PM
Author:  Wradical Number:  132657 of 133120

As it happens, I had quite a large short term capital gain which was more than enough to cover the interest deduction. I think in this case there is no need to do the alternative calculations you suggest. Even if I wanted to do it (say, for a future year) where do I make this decision? TT did not ask me, unless I missed it, and used the default option.
-------------------------
You're right. In your case, for this year, you're getting the full amount of the deduction without sacrificing the benefit of the long-term nature of the capital gains.

I don't know exactly where in the Step-by-Step method with Turbo Tax you make the election - *probably* in the interest expense area where you entered the amounts. OR you might find it easier to make the entry in the Forms view, right on the 4952 worksheet.

Bill
Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us