1040-US: Printing Form 4952, Investment Interest Expense Deduction

Alerts and notices

Question

My client's investment interest expense is correctly reported on Schedule A, so why is Form 4952 not printing?

Answer

Form 4952 is not required to be filed if all of the following conditions are true:

  • Investment interest expense does not exceed investment income from interest and ordinary dividends minus any qualified dividends.
  • There are no other deductible investment expenses (Form 4952, line 5).
  • There is no disallowed investment interest carried over from the prior year (Form 4952, line 2).

If all conditions are met, the application does not automatically mark the form to print unless you have forced the form to print.

Related topic: Investment income and expenses FAQs (1040)