My client has $5,000 of interest income and $1600 of investment interest paid. However his itemizized deductions are less than the standard deductiopn. Is there anyway to carry the investment interest forward? I think not, but I figured I should make sure.
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Nope, it's lost. Investment interest is an itemized deduction, and the deduction is limited each year by investment income, but it can't be used of offset that income directly ... be nice if it did. Instead the allowable amount becomes part of the current year's itemized deductions. So if the T/P doesn't itemize, the amount that would have been deductible is lost.Roland Slugg
"I do what I can."
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