Income Taxes and Record Keeping ( tax ) Message Board

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Strategies & Market Trends : Income Taxes and Record Keeping ( tax )

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To: emil who wrote (858)	3/31/1998 9:47:00 PM
From: Colin Cody	Read Replies (1) of 5810

Interest income is NOT directly offset against interest expense in the situation you described. e.g. an Investor, earns some interest when he has a credit balance and pays margin interest when he has a debit balance. . In this case they are "offset" via the limitations for deducting investment interest. The gov't does not want to encourage BORROWING for INVESTMENTS. Borrowing is what caused the 1927 Market Crash. It makes sense that the Gov't not reward us (too much) for borrowing on margin. . All you need research is form 4952, which is for individual taxpayers, filing form 1040 who incur interest on debt used to acquire their investments. . Colin

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