Beginning in 1993, however, net capital gains from the disposition of investment property no longer are included in the definition of investment income when determining the limit on the
investment interest expense deduction.
Closer scrutiny is being given to referrals by physicians to entities in which they have an
investment interest.
1, 2002-May 31, 2004, then
investment interest until maturity.
The IRS ruled individuals who purchase 100% of a regular or C corporation's stock must treat the interest expense on the stock acquisition loan as
investment interest (revenue ruling 93-68, IRB no.
JGTRRA Section 302(a) converts dividends from ordinary income to capital gain for purposes of the
investment interest deduction; see Sec.
At least 75% of the income must be derived from real estate transactions, gains on other REIT shares, real property tax refunds, gains from foreclosed property, rent from real property, interest on mortgages, gains from the sale or disposition of most real property or real property interests and qualified temporary
investment interest.
163(d)(5)(A)(ii), certain interest expense attributable to trade or business activity will be characterized as
investment interest expense if the taxpayer does not materially participate in the activity but is required to treat the activity as nonpassive.
The miscellaneous itemized deductions of schedule A are subject to the 2% rule and the
investment interest expense of schedule E is subject to the net investment income rule - restrictions that don't apply to items on schedules C or C-EZ.
163-9T(b)(2)(i)(A) valid and disallowed the taxpayer's claim for refund based on an
investment interest deduction attributable to deficiency interest paid.
Hoffman said CPAs have found increased complexity for individuals in the areas of passive activity losses and
investment interest limitations.
On his personal return, Dick has $30,000 of
investment interest expense on debt incurred to carry an investment in land.
