Screen 4952 - Investment Interest Expenses (1040)

Alerts and notices
Leave feedback

Internal Employees: Submit feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.


Characters left:

MFA required for electronic filing

Effective May 3rd, the 2017 version of UltraTax CS requires multi-factor authentication (MFA) to transmit e-files from CS Connect. Find out more.

Overview

Use this screen to enter information that transfers to Forms 4952, Investment Interest Expense Deduction.

A custom paragraph may be included to report the amount of any investment interest expense carryover in the transmittal letter. To select this custom paragraph on a client basis, select custom paragraph Investment int exp C/O (TL) from one of the Paragraph Description fieldviews in Screen Letter. To select this custom paragraph to print for all clients when applicable, choose Setup > 1040 Individual, click the Letters & Emails button in the Federal tab, click the Custom Paragraphs tab, and mark the Investment int exp C/O (TL) checkbox. For additional information, see Custom paragraph FAQs.

See also: Investment income and expenses FAQs

Form 4952 - Investment Interest Expense Deduction

Use this section to enter Form 4952 information. Note that you can enter amounts for both regular and AMT calculations. If the AMT fields are left blank, the application assumes that these amounts are zero.

Note: To force Form 4952 to print if it has data and whether or not it is required, choose Setup > 1040 Individual. Click the Federal tab. Click the Tax Return button in the Collation group box. Click the Pages that can be forced to print option in the Focus group box at the top of this dialog. Choose the collation (Government, Client, or Preparer) that you want to modify. Choose Form 4952, then mark the Always if data option. Click OK when done. For more information on the filing requirements for Form 4952, see the "Who Must File" section of the form instructions.

Use these fields to adjust the calculated amounts for lines 4a and 4d on Form 4952 and net capital gain from investments, which is used in Form 4952 calculations.

Note: To include eligible capital gains in investment income, use the Elected capital gain/qual divs to include in investment income (Force) fields to ensure the proper calculation of tax using the Schedule D tax worksheet.

Enter the part of line 4e that you elect to attribute to line 4g. Do not enter less than the excess of line 4g over line 4b. This amount will be reported to the left of line 4e and will be used in lieu of the amount on line 4e when calculating the tax.

Use these fields to override (force) the calculated amount of investment expenses reported on Form 4952, line 5. If no investment expense should appear on Form 4952, line 5, enter 0 (zero) in these fields.

Capital loss carryover amounts in Screens CO and K1T-2 are automatically included in the calculation for net investment income. To override the capital loss carryover amounts to include in the calculation for net investment income, enter the applicable amounts in these fields.

The application automatically determines the amount of net capital gain from the disposition of investment property and/or the amount of qualified dividends to include in investment income. The amount of gains and qualified dividends included on Form 4952, line 4g, are only calculated to the extent necessary to deduct all investment interest expenses in the current year. To elect a different amount of net capital gain from property held for investment and/or qualified dividends included on line 4g, enter the applicable amounts in these fields. To force all net capital gains and qualified dividends to be taxed at the reduced capital gain and qualified dividend tax rate, thus excluding the amounts from the calculation of the deduction for investment interest expense, enter 0 (zero) in these fields. Alternatively, enter X in the Suppress automatic calculation of line 4g qualified dividend/capital gain election field to prevent the calculation altogether.

When the application determines the amount of investment income to include in the calculation of the interest expense deduction, the amount on Form 4952, line 4g is first attributable to net capital gain from property held for investment (line 4e) and then to qualified dividends (line 4b). To elect to treat the amount on line 4g as first attributable to qualified dividends, enter X in this field. Marking this field may be beneficial for returns filing Form 1116, Foreign Tax Credit, as the tax after credits may be lower in certain scenarios.

Enter X in this field to suppress the automatic calculation of gains and/or qualified dividends included on Form 4952, line 4g. The application automatically determines the amount of net capital gain from the disposition of investment property and/or the amount of qualified dividends to include in investment income. The amount of gains and/or qualified dividends included on Form 4952, line 4g, are only calculated to the extent necessary to deduct all investment interest expenses in the current year.

Share This