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To locate Form 4952 within your account, from the My Account screen after signing in, click on: Federal. Deductions (select my forms) Itemized Deductions.
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.
Unused interest expenses can be carried back three years and carried forward indefinitely to be deducted against investment income in other years.
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, estate, or a trust, you must file Form 4952 to claim a deduction for your investment interest expense.
Any excess investment interest expense that is disallowed is carried forward indefinitely until net investment income is recognized.
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People also ask

You can deduct margin interest from your taxes by itemizing your deductions and subtracting margin interest costs from your net investment income. Tax law limits how you can apply margin interest deductions. Specifically, you can never deduct more than your investments earn in any given tax year.
Use Form 4952 to figure the amount of investment interest expense you can deduct for 2023 and the amount you can carry forward to future years. Your investment interest expense deduction is limited to your net investment income.