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datou
New Member

margin interest carry over without itemizing deduction?

Hi, if I opt for the standard deduction instead of itemizing deductions, am I able to carry forward my margin interest expense to the next year if my net investment income for the current year is negative? Can margin interest expenses be treated similarly to capital losses, which can be carried forward with the standard deduction?

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JulieS
Expert Alumni

margin interest carry over without itemizing deduction?

Yes, if you complete Form 4952 and your deduction for margin interest is disallowed, you can carry the disallowed amount forward to next year. 

 

You don't have to itemize to carry the amount forward, but only the amount that is disallowed carries forward. 

 

For example, if your margin interest is $1000, but you are only allowed $500 for the current year, you can carryforward $500 to next year. If you don't itemize this year, that does not change the disallowed amount that can be carried forward, it is still $500, whether or not you itemize. 

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1 Reply
JulieS
Expert Alumni

margin interest carry over without itemizing deduction?

Yes, if you complete Form 4952 and your deduction for margin interest is disallowed, you can carry the disallowed amount forward to next year. 

 

You don't have to itemize to carry the amount forward, but only the amount that is disallowed carries forward. 

 

For example, if your margin interest is $1000, but you are only allowed $500 for the current year, you can carryforward $500 to next year. If you don't itemize this year, that does not change the disallowed amount that can be carried forward, it is still $500, whether or not you itemize. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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