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Author: GreatWideOpen Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121149  
Subject: 4952 Interest Expense deduction Date: 3/17/2000 11:17 PM
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I received from the IRS the following
letter;
"It appears u may have deducted
more investment interest than u
were allowed, which cant be more
than your investment income"

I had $5,525 in interest expenses
for buying stock on margin, &
earned $30,000 in short term(ST)
capital gains with $6k in
LT capital losses.

Short term capital
gains is..included as investment
income where long term is only
included if elected on line 4e
of this form 4952.

I had suffient ST capital gains
for the deduction, right? Or did I
just fill the form out wrong?


I put the 25k on line
4b(net gain from the disposition
of property held for investment), nothing on 4c, and nothing on line 4c(net CAPTIAL gain
from the disposition of property
held for investment).

the 25k was carried down to line 4d which is
4b & 4c subtracted.

What does the IRS want?

How would the info be presented
if I also had long term capital gains
as well?
TY
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