Form 4952 - Investment Interest Expense Deduction and Investment Expenses

Investment (margin) interest deduction is claimed on Form 4952 Investment Interest Expense Deduction and the allowable deduction will flow to Schedule A (Form 1040) Itemized Deductions, Line 9 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 in the upper left-hand corner, then click Federal.
  2. Click Itemized or Standard Deductions in the Federal Quick Q&A Topics menu to expand, then click Interest expenses.
  3. Continue with the interview process to enter all of 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

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.