Get Identifying Number 96 12a Name(s) Shown On Return Part I 1 2 3 Total Investment Interest Expense 1

Investment interest expense The amount that you can deduct is capped at your net taxable investment income for the year. Any leftover interest expense gets carried forward to the next year and can potentially be used to reduce your taxes in the future.

If you are an individual, estate, or a trust, you must file Form 4952 to claim a deduction for your investment interest expense.

Any excess investment interest expense that is disallowed is carried forward indefinitely until net investment income is recognized. Form 4952 is used to determine the investment interest expense deduction.

To actually claim the deduction for investment interest expenses, you must itemize your deductions. Investment interest goes on Schedule A, under "Interest You Paid." You may also have to file Form 4952, which provides details about your deduction.

You also aren't eligible if you haven't received any net investment income for the tax year. Lastly, you can carry over margin interest to future tax years.

Investment interest is deductible only to the extent of a taxpayer's net investment income. Form 4952 is used to figure the amount of investment interest expenses that the taxpayer can deduct for the tax year and the amount that can be carried forward to future tax years.

Your investment interest expense deduction is limited to your net investment income. For more information, see Pub. 550, Investment Income and Expenses. If you are an individual, estate, or a trust, you must file Form 4952 to claim a deduction for your investment interest expense.

If the interest expense exceeds all other income for the year, this becomes a non-capital loss, which can be carried back to previous tax years, or forward to future tax years.