Form 4952

Form 4952

A form one files with the IRS to calculate the interest one spends on investments each year. One may deduct this interest from his/her income for tax purposes, provided that it does not exceed his/her net investment income.
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This additional activity presents students with more real-world situations and requires them to verify certain carryover amounts from one year to the next, including capital loss carryovers from Schedule D, Capital Gains and Losses, passive activity loss carryovers from Form 8582, Passive Activity Loss Limitations, and investment interest expense carryover from Form 4952, Investment Interest Expense Deduction.
To make the election, enter on line 4g of Form 4952, Investment Interest Expense Deduction, the amount of qualified dividends and net capital gain to include in investment income.
Taxpayers make the election on Form 4952, "Investment Interest Expense Deduction" and must file the Form 4952 by the due date of the return (including any extension the taxpayer has obtained).
Investment interest expense is first reported on Form 4952, Investment Interest Expense.
(4) See instructions for Line 4e, Form 4952 (1995), which specifically states, "Once made, the election may not be revoked without IRS consent."
Note: Before making these adjustments, taxpayers must reduce their foreign net capital gain by any amount they elect to include in investment income on line 4g of Form 4952, Investment Interest Expense Deduction.
163(d) unless Form 4952, Investment Interest Expense Deduction, is completed or (2) Sec.
1.163(d)-1(b), the election to treat qualified dividends as investment income is made in the same way as the one to treat net capital gain as investment income, on Form 4952, Investment Interest Expense Deduction.
163(d), unless Form 4952, Investment Interest Expense Deduction, is completed or (ii) Sec.
163(d), unless Form 4952, Investment Interest Expense Deduction, is completed, or (2) amounts disallowed under Sec.
(9)Elections are made on the Form 4952, Investment Interest Expense Deduction, and can apparently be made by filing two forms, one for regular tax and one for AMT.
In addition, beginning in 1988, the Service deleted from Form 4952, Investment Interest Expense Deduction, a line that required taxpayers to compute a taxable income limitation.