Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: Arvinder Malhotra who wrote (16498)	4/13/1998 5:26:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 25960

Arvinder, if you do not itemize your deduction but file Schedule D, it is tough to claim that investment interest. What I would do if I was you, I would include it as an additional transaction (call it "Margin account Interest) on schedule D and take it. I am not an accountant, so take this advice with a grain of salt, but you need to pay taxes only on your net capital gains and investment interest reduces this as much as dividends increases this. Another approach would be if you file schedule B, have a line (line 5) with negative interest stating as above that it is margin account interest. I hope it helps. Zeev

To: Arvinder Malhotra who wrote (16498)	4/13/1998 6:07:00 PM
From: Paul Dieterich	Respond to of 25960

Arvinder (OFF TOPIC), After doing a little research, I believe the right thing to do to deduct margin interest costs is to attach a Form 4952 (Investment Interest Expense Deduction) to your 1040, using it to fill out line 21 on Schedule D. IRS forms can be found at: irs.ustreas.gov But check it out first, because I don't know anything. --PD

To: Arvinder Malhotra who wrote (16498)	4/13/1998 9:59:00 PM
From: Greg Jung	Respond to of 25960

Arvinder, re: margin Interest You do need form 4952. However I think it will turn out that, the result goes on Schedule A. Since you don't use Sched A you can't do that HOWEVER you may carry the loss over to next year by declaring it "disallowed" (on form 4952). You need the form this year and the amount will add into the same form next year. That oughta work until you have a schedule A. (sched A should work ok even without any special deductions, doesn't it?) Greg PS to reiterate, in order to deduct 1997 margin interest on 1998 taxes you DO NEED form 4952 for 1997 tax return.