Margin Interest Deductible In This Situation?

Question

I know margin interest is only deductible up to the amount of net invesment income I've received. Does that mean if I have $10k in short term capital gains and $10k in short term capital losses for a given year--IOW, no overall net gain--that I can't deduct margin interest? Thanks in advance.

Answer 1

In your example, you would have $0.00 in net investment income. Therefore, your investment (ie margin) interest deduction would be limited to $0.00. It gets carried foward to future year though.

Answer 2

Did you happen to earn any interest or dividends on investments? That would also be part of your net investment income.