TY JASON. If you only have short term cap gains in a particular year, can you use the margin interest you paid to offset that? Or does it have to be offset vs long term gains or dividends only?
How do you separate the margin interest? Schwab just gave me all my Margin Interest, but some of it is used to own stock and others just on living expenses.
Very helpful as usual! Question: For line 4d, would that include the sale of a house or stocks if you did make the election to include long term as short term?
All that to get $2 in itemized deduction then taxed on the $2 reduction deduction? Don't even saved on the $2 bottom line. Am I right? Then my CPA charged on each of the forms generated no matter how simple, it would cost way more in her fees for Form 4952 or any simple forms. IRS return generates so many forms now.
Hi Jason, Excellent video - Very helpful. Would you produce another video of this form being filled out with Capital Gains/Losses? I have read the instructions and it is extremely confusing for such a simple form. I have massive carry forward losses from 2008-2010 that I am offsetting with large gains in 2020/2021. I have used a substantial amount of margin and therefore have a large amount of interest to deduct. I have not used up all my carry forward capital losses yet, but have significant interest expenses that I would like to carry forward for when I do get into the net capital gain situation which should be this 2022 tax year. I realize that I may lose my preferred tax status on dividends and long term capital gains, but all of my capital gains are going to be short term capital gains so they will be taxed as regular income anyways. Also, would you briefly explain Itemized deductions vs Standard deductions and how that relates to interest expense/carry forward. If my standard deduction is more than my interest expense, do I lose that interest expense or the option to carry that interest expense forward?
Hi Jason, Thanks for video. great info. quick question, on calculating Net Investment Income (only include interest income and non-qualified dividend). Can I include interest income/non-qualified dividend income from multiple brokerage accounts (all under my name) to offset the margin interest expense in ONE brokerage account for the filing? Thank you.
is the only way to carry forward a previous years margin interest is if you filled out this form. this will be my first year using schedule A. trying to see if i can take advantage of past margin interest. thanks for the video. really helpful
No, the same rules apply regardless of the creditor. Even if you borrowed money from a family member, invested the loan proceeds into stocks, the interest expense you pay to a family member is still investment interest expense.
@@JasonDKnott 5:18 so will this apply to larger margin interest loan expenses? Say $50k of margin interest against dividend s? Will dividend interest be considered qualifying income??
I think you can but you would have to count the 89K as regular income by listing it in 4g. This would mean it would be taxed at a higher rate than it would if it was considered capital gains. You would also have to give up the standard deduction.
So without making that selection to forego the standard deduction a person with $89k in dividend interest would be liable for the taxes due on that dividend interest? Even though it cost him x amount in margin interest which he can not expense against dividend interest? Wow, sounds like a person can get into quiet a jam in taxes without knowing this inform.. thx.
Very Good Informative Video. Can you post and example of filling out the form when you decide to deduct dividends and short term or long term capital gains?
Great materials on margin interest tax deduction
Thanks for the support!
TY JASON. If you only have short term cap gains in a particular year, can you use the margin interest you paid to offset that? Or does it have to be offset vs long term gains or dividends only?
How do you separate the margin interest? Schwab just gave me all my Margin Interest, but some of it is used to own stock and others just on living expenses.
Very helpful as usual! Question: For line 4d, would that include the sale of a house or stocks if you did make the election to include long term as short term?
All that to get $2 in itemized deduction then taxed on the $2 reduction deduction? Don't even saved on the $2 bottom line. Am I right? Then my CPA charged on each of the forms generated no matter how simple, it would cost way more in her fees for Form 4952 or any simple forms. IRS return generates so many forms now.
Hi Jason, Excellent video - Very helpful. Would you produce another video of this form being filled out with Capital Gains/Losses? I have read the instructions and it is extremely confusing for such a simple form. I have massive carry forward losses from 2008-2010 that I am offsetting with large gains in 2020/2021. I have used a substantial amount of margin and therefore have a large amount of interest to deduct. I have not used up all my carry forward capital losses yet, but have significant interest expenses that I would like to carry forward for when I do get into the net capital gain situation which should be this 2022 tax year. I realize that I may lose my preferred tax status on dividends and long term capital gains, but all of my capital gains are going to be short term capital gains so they will be taxed as regular income anyways.
Also, would you briefly explain Itemized deductions vs Standard deductions and how that relates to interest expense/carry forward. If my standard deduction is more than my interest expense, do I lose that interest expense or the option to carry that interest expense forward?
Hi Jason, Thanks for video. great info. quick question, on calculating Net Investment Income (only include interest income and non-qualified dividend). Can I include interest income/non-qualified dividend income from multiple brokerage accounts (all under my name) to offset the margin interest expense in ONE brokerage account for the filing? Thank you.
is the only way to carry forward a previous years margin interest is if you filled out this form. this will be my first year using schedule A. trying to see if i can take advantage of past margin interest. thanks for the video. really helpful
does it matter if you borrowed from from a broker (margin) vs a bank (loan)?
No, the same rules apply regardless of the creditor. Even if you borrowed money from a family member, invested the loan proceeds into stocks, the interest expense you pay to a family member is still investment interest expense.
@@JasonDKnott 5:18 so will this apply to larger margin interest loan expenses? Say $50k of margin interest against dividend s? Will dividend interest be considered qualifying income??
"so you could just sit at home and watch tv". You make that sound like it's a bad thing. haha!
You're right, it's not a bad thing at all!
Hi, what if I have $9 divident but overall short term loss which I carry fwd on Sch.D?
So if I take out margin to buy a car, I can’t the interest on that amount deducted ?
Good inform.. so if a person has 89k in margin interest, he can not use this to offset his dividend income if he were to recieve 89k in dividend s?
I think you can but you would have to count the 89K as regular income by listing it in 4g. This would mean it would be taxed at a higher rate than it would if it was considered capital gains. You would also have to give up the standard deduction.
So without making that selection to forego the standard deduction a person with $89k in dividend interest would be liable for the taxes due on that dividend interest? Even though it cost him x amount in margin interest which he can not expense against dividend interest? Wow, sounds like a person can get into quiet a jam in taxes without knowing this inform.. thx.
@@shadowironbank5469 yeah, that is the way it looks to me although I am not a tax pro or anything like that.
Very Good Informative Video. Can you post and example of filling out the form when you decide to deduct dividends and short term or long term capital gains?