Form 4952 - Investment Interest Expense Deduction and Investment Expenses

Investment (margin) interest deduction is claimed on Form 4952 and the allowable deduction will flow to Schedule A, Line 14 to be claimed as an itemized deduction, up to the amount of your investment income.

To enter the information for Form 4952 in the TaxAct program:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
  2. Click Itemized or Standard Deductions in the Federal Quick Q&A Topics menu to expand the category and then click Interest Expenses
  3. Continue to the screen titled Enter the amount of investment interest you paid or accrued in 2019
  4. The program will proceed with the interview questions for you to enter or review the appropriate information to complete Form 4952

Tax Reform Update: Most of the miscellaneous itemized deductions you may have claimed in the past, including investment expenses, have been suspended under the new law. These deductions include:

  • Unreimbursed employee expenses (travel expenses, dues/licenses, tools/supplies, education, etc.)
  • Expenses related to the collection of income (investment fees, safe deposit box rental, tax advice, etc.)
  • Tax preparation fees