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)
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