Capital Gains Trade-Off

[Snaggletooth]

Somewhere in my foggy memory lurks a strange rule involving Form 4952. Use of Form 4952 to claim interest meant that the investment to which the interest attached was not qualified for LTCG.

Can someone tell me whether this is still around? I think it was part of the Revenue Enhancements of the '90s but might have been scrapped when capital gains received the super treatment with 15% ceiling under Bush.

[jainen]

a strange rule

>>a strange rule involving Form 4952<<

Perhaps you mean the election on line 4g to include qualified dividends and capital gain as investment income. Although you lose the low capital gain tax rate, you raise the limits for deductible investment income expense.

[Snaggletooth]

Thanks

...yes that is it. A trade-off. Thanks Jainen