Above-the-line deductions are best. This is what you want. Above-the-line deductions directly reduce your adjusted gross income.
In contrast, below-the-line deductions equate roughly to getting hit below the belt. Itemized deductions go below the line and suffer various indignities.
Investment interest deductions below the line
can suffer AMT adjustments that increase your taxes, and
do not reduce your phaseouts and therefore cause a tax increase when compared to investment interest above the line.
As an individual taxpayer, you may deduct investment interest to ... Log in to view full article.