Elliott borrowed money on his margin account during the year and used the funds to buy shares of an exchange$-$traded fund. He paid $$550$ in interest on the loan, but his net investment income for the year only totaled $$300.$

Elliott may deduct:

The entire $$550.$

$$300,$ and the remaining deduction is lost.

$$300,$ and the remaining deduction is carried forward to the next year.

$$0,$ since TCJA eliminated the miscellaneous itemized deduction for Tax Years $2018-2025.$