I went to H&R Block to file my tax return.
My investment (short term) income was higher than the interest I payed to Ameritrade broikerage for margin interest. I expected that margin interest (used only to finance short term stock trades) can be deducted from my investment income. However, H&R Block accountant (?!) told me that, since my margin interest payment is lower than $5,000 deductible allowed by the Government, nothing would be accomplished (i.e. I won't pay less taxes) by deducting it. In short, if my short term trades investment income was $2,000 and margin interest was $1,000, according to H&R Block person, I have to report $2,000 as investment income and I can simply forget about $1,000 margin interest payed to the brokerage on that income (it can't be deducted) However, everything I read on the Web appears to contradict this. Now I am completely confused and seeking explanations and help on this issue. Why are broker's comissioins deductible but margin interest is not? Thanks for any clarification, Tony