2023 Desktop Premier Form 4952 Investment Interest

[Mydearman]

Why the investment interest expense does not flow to Schedule A Line 9?

[AR_CPA2]

Dear Mydearman,

In order to claim the investment interest expense deduction on Schedule A, Itemized Deductions, you have to have Investment Income. 

As per Internal Revenue Code §163(d):

163(d)(1)In General

In the case of a taxpayer other than a corporation, the amount allowed as a deduction under this chapter for investment interest for any taxable year shall not exceed the net investment income of the taxpayer for the taxable year.

163(d)(2)Carryforwardof Disallowed Interest

The amount not allowed as a deduction for any taxable year by reason of paragraph (1) shall be treated as investment interest paid or accrued by the taxpayer in the succeeding taxable year.

Hope this helps.

Have an amazing day.

Amita R (CPA 10+ years)

[Mydearman]

Investment income is more than the investment interest expense.  Form 4952 Line 8 shows Investment interest expense deduction amount but not on Schedule A.

[AR_CPA2]

I found some additional info on your topic:

https://turbotax.intuit.com/tax-tips/investments-and-taxes/what-is-form-4952-investment-interest-exp...

Is it possible that you're in the Alternative Minimum Tax situation? 

We can only answer in general and avoid specifics in a public conversation.

[Mydearman]

No AMT is calculated at this time.

[Mydearman]

Where should I input the info for the system to create a Form 4952 AMT ?

[AR_CPA2]

The Alternative Minimum Tax Info is entered in the Other Tax Situations section under the Federal Tax tab.  

For more specific help in your situation, please feel free to call TurboTax Live.

I found some additional info, please look at this previous postings:

Turbo Tax is not deducting investment interest expense from the investment interest income

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/turbo-tax-is-not-dedu...