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While filling out my taxes with two different programs (TaxAct and TurboTax) found that the they treat the investment interest expense differently. Could someone please suggest which option is the currect one.

Some numbers first for '00:
Short Term Capital gains: ($7,876)
Long Term Capital gains: 11,392
Net Gain $3,516
Taxable Interest & Dividend $870
Margin Interest $1,540

With these numbers, TurboTax indicates that the complete $1,540 in margin Interest can be itimized on Schedule A line 13 (after filling form 4952), while the TaxAct limits this diduction to $870 (equal to the Interest and Dividend). TaxAct also fills in form 4952 but the difference in the two is on line 4c in the two software. TaxAct shows both line 4b and c as $3516 (equal to net capital gain) and thus line 4d becomes 0. On the other hand TurboTax has line c as 0 and this line 4d equals the Net Gain (& as Margin Interest is less than Net Gain, the whole amout is deductable). So which program is correct??

thanks in advance for your advise.

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