Margin Interest

[nostalgic]

What is the name of your state?What is the name of your state? PA

Through the year, from buying some securities on margin, I've accrued a "margin interest charge" of $290. Is this interest charge deductible, and if so, where?

Thank you for your time.

 

[Snipes5]

Yes. Schedule A, miscellaneous itemized deductions subject to 2% of Adjusted Gross Income. So hopefully you have other things to add to it, such as employee expenses, union dues, etc, which will push you over 2% of your AGI.

This of course presumes that you're itemizing your deductions.

Snipes

 

[abezon]

Margin interest is deducted on Schedule A as "investment interest", in the same section as mortgage interest. Fees paid for investment advice (what stocks to buy/sell, management fees. etc.) is deducted as a miscellaneous deduction.

 

[Glasso]

subscription fees

What is the name of your state? PA

Abezon, you state that, "fees paid for investment advice (what stocks to buy/sell . . .) are deducted as a miscellaneous deduction" on Schedule A.

For clarification, I am a subscriber to Jim Cramer's Action Alert Plus. For $350/yr. he e-mails his subscribers anytime he transacts a buy or a sell. He does not "tell" us to buy this or that, but simply tells us what he is doing in his own portfolio.

Would that $350 subscriptions fee qualify as a miscellaneous expense deduction?

Thank you for your time.