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 (16502)	4/13/1998 10:45:00 PM
From: Tulvio Durand	Read Replies (1) \| Respond to of 25960

*OT* I believe that you need to submit Form 4952 this year even though you can't take deduction this year. This allows you to carry forward to next year and beyond any accrued interest expense. Tulvio

To: Arvinder Malhotra who wrote (16502)	4/14/1998 3:04:00 AM
From: Elroy Jetson	Read Replies (2) \| Respond to of 25960

That is correct. You can deduct Margin Interest which exceeds investment income, including Interest and Dividends from Schedule B, as calculated on Form 4952. The balance is carried forward to the next year. The Margin Interest, whether deducted this year or carried forward to future years, can ONLY be deducted on a Schedule A. If you take a Standard Deduction because it's larger than your Schedule A, the Margin Interest is not deductible. The entry on Schedule D line 21 is NOT for deducting Margin Interest. This section of the Schedule D alters the tax rate on your investment income by the Capital Gains Rate as adjusted by your total income level. The Margin Interest entered here appears to reduce your tax rate if your total income is less than $41,200 or $24,650 if single.