Investment Indebtedness

Investment Indebtedness

Investment Indebtedness means:
indebtedness incurred to carry or purchase investments in assets that produce portfolio income. Limitations are placed on deductions for investment interest expense incurred with respect to the debt. The following do not result from investment indebtedness:

• interest from a qualified residence.

• interest paid in a rental real estate business in which the taxpayer actively participates.

• interest used to compute gain or loss from a passive activity.

Generally, investment interest expense may be deducted to the extent of net investment income. Disallowed investment interest expense may be carried over. Former IRC (check if this IRC provision is current here) § 163(d).


Posted

in

by

Tags:

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *