Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I received from the IRS the following
"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?
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.