*07000149* FORM 4952A ALABAMA DEPARTMENT OF REVENUE Investment Interest Expense Deduction ATTACH TO 2025

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Use Form 4952 to figure the amount of investment interest expense you can deduct for 2024 and the amount you can carry forward to future years. Your investment interest expense deduction is limited to your net investment income.
Investment interest expense The amount that you can deduct is capped at your net taxable investment income for the year. Any leftover interest expense gets carried forward to the next year and can potentially be used to reduce your taxes in the future.
Tax-deductible interest allows you to reduce your taxes by claiming allowable borrowing expenses. Student loan interest is taken as an income adjustment, so you dont need to itemize your taxes to benefit from this tax break.
In most cases, you can deduct all of your home mortgage interest. How much you can deduct depends on the date of the mortgage, the amount of the mortgage, and how you use the mortgage proceeds.
Mortgage interest paid on a second residence used personally is deductible as long as the mortgage satisfies the same requirements for deductible interest as on a primary residence.
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Full mortgage interest deduction is available for rental properties, except for non-business related loans and owner-occupied portions. Eligible loans for deduction: First mortgages, HELOCs, second mortgages, home improvement loans, and fixed-rate loans for rental activities.
If you receive rental income from the rental of a dwelling unit, there are certain rental expenses you may deduct on your tax return. These expenses may include mortgage interest, property tax, operating expenses, depreciation, and repairs.
Your investment interest expense deduction is limited to your net investment income. For more information, see Pub. 550, Investment Income and Expenses. If you are an individual, an estate, or a trust, you must file Form 4952 to claim a deduction for your investment interest expense.

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