I am going to use round figures here, but they are indicative of my 2021 tax return.
INT $300
DIV $6,000
Sch D CG $100,000+
Margin Int $500 (4952, L1)
INV INT carried forward $13,000 (4952, L2)
Gross Inc $15,000 (4952, L4a, Int+div+$8,000 farm income)
CG stuff $100,000 (4952, L4d & L4e)
Subtracting $0 (4952, L4f)
And on the screen, Smart Worksheet shows:
A $8,000+ (INT + Farm)
B $5,000 (the $13,000 minus Line A)
C $100,000
D $5,000 (lesser of B & C)
OK, what do I do for Line 4g. I think I have the option of from 0->13,000, but Line 4D from the Smart Worksheet above indicates a Max Election amount of $5,000. I seem to get the maximum Refund when I use the $5,000 on line 4g - but when I do that, the max INV INT of $13,000 flows to the Schedule a, leaving nothing to carry forward to 2022. I seems that the only way I can get any Int Exp to carry forward to 2022 is to use "0" on line 4g and then the $5,000 will be carried forward.
But, I can't seem to get the entire $13,000 to carry forward, no matter what I enter PLUS I am not sure I want that - or WHY would I want that.
So the general question is, WHAT kind of value should I put on Line 4g. should I max it out at $13,000 and use up the entire $13,000 of INV INT and be done with it or should I go with "0" and carry the $5,000 forward. OR is the $5,000 shown on Line D above the TTax recommended value to put there.
I had extra high CG this year because of buying a house, so the CG may be quite lower in coming years, if that makes a difference. Just can't figure out if I shoud go high, go low, or something inbetween.
ron in shawnee
