I'm using FreeTaxUSA, and I'm offered the Deductible Investment Interest. Setting aside (or not!) how this ever made it into the tax code, does anyone know how to take advantage of it with interest rates where they are today?
Here's the description:
> Deductible investment interest is interest paid on margin accounts or interest paid on loans used to buy or carry investments. For example, if you get a margin loan through your brokerage account and use it to buy more stocks, then the interest you pay is investment interest. Another example would be if you bought land to hold as an investment, then the interest expense you pay on the loan to obtain the land is investment interest.
> Investment interest is deductible up to the amount of your investment income. Investment income includes dividends, interest income, and royalties. Disallowed investment interest is carried forward and can be used on future year tax returns.
