Do I need to file 4952?

Do I need to file 4952?

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

Is form 4952 used to determine the deductible investment interest?

IRS Form 4952 determines the amount of deductible investment interest expense as well as interest expense that can be carried forward. The form must be filed by individuals, estates, or trusts seeking a deduction for investment interest expenses.

What is the purpose of IRS Form 4952?

Use this form to figure the amount of investment interest expense you can deduct for the current year and the amount you can carry forward to future years. Your investment interest expense deduction is limited to your net investment income.

How do I claim my AMT refund?

Claim the AMT credit while filing your current year tax return by filling out Form 8801 and filing it along with your tax return. Carryforward and track the remaining credit you were not allowed to use in the current year.

Who must file Form 4952?

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.

Does TurboTax have Form 4952?

#1 online tax filing solution for self-employed: Based upon IRS Sole Proprietor data as of 2020, tax year 2019. Year-Round Tax Estimator: Available in TurboTax Self-Employed and TurboTax Live Self-Employed.

Where does AMT show up on 1040?

To find out if you may be subject to the AMT, refer to the Alternative Minimum Tax (AMT) line instructions in the Instructions for Form 1040 and Form 1040-SR. If subject to the AMT, you may be required to complete and attach Form 6251, Alternative Minimum Tax – Individuals. See the Instructions for Form 6251.

What qualifies as investment interest?

Investment interest is any interest that is paid or accrued on debt allocable to property held for investment. Investment income is the gross income from property held for investment, excluding net capital gains from the disposition of property held for investment and qualified dividend income (QDI).

Can I deduct mortgage interest on investment property?

Unfortunately, the mortgage interest deduction isn’t available for investment properties; however, mortgage interest can be deducted as a business expense to lower taxable income by filling out Schedule E on your tax return.