Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I have another question on Form 4952. What do I input on Line 5? Instructions say:

"Investment expenses are your allowed deductions, other than interest expense, directly connected with the production of investment income. For example, depreciation or depletion allowed on assets that produce investment income is an investment expense."

If I have only stocks and shares including an MLP (EPD - Form 1065) do I have any such Investment Expenses? If I input zero I may be overestimating Net Investment Income (Line 6) but so long it is much larger than Interest Expense (Line 3) should it not be okay?

Zero is probably right, for a combination of reasons. That quoted section is not particularly useful. EPD is Enterprise Products Partners, a pipeline company. The income (or losses) it reports to you as a partner on your K-1 is mostly business income, subject to the (publicly traded partnership-PTP) passive loss limits, as opposed to investment income for this purpose. But you have to look at your K-1 for amounts classified as investment income and investment expenses to which Form 4952 applies.

Any other expenses you have related to your other investments are *probably* miscellaneous itemized deductions, which are not deductible for the next few years.

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.