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Level 3
posted Apr 14, 2024 6:49:20 AM

Deducting TY2021's Disallowed Investment Interest Expense in TY2023

I had Disallowed Investment Interest Expense of $928 (line 7 of form 4952) in TY2021 returns. In TY2022, although I had net investment income, I filed returns via standard deduction method and thus wasn't able to make use of the TY2021 disallowed investment interest expense. Now filing TY2023 via Itemized deductions method. Will I be able to deduct the Disallowed Investment Interest Expense of $928 (line 7 of form 4952) in TY2021?

0 2 4805
2 Replies
Expert Alumni
Apr 16, 2024 7:02:43 PM

No. You won't be able to claim it this year.

Level 3
Apr 16, 2024 7:07:14 PM

Ok thanks for the response. Why would these disallowed investment interest expenses carry over like capital loses? The IRS mentions “carry’s over to future years” but TT specifically asks whether or not this disallowed investment interest expense line item exists in the TY2022 ie the previous year.