Form 4952 Investment Interest Expense Deduction 2008
Summary: This is an example of Form 4952 (2008) as pertains to the description in the text. The line items are completed as
follows:
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“Name(s) shown on return” field contains Jane Smith
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“Identifying number” field contains 111-00-1111
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| Under“Part I: Total Investment Interest Expense”:
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“1. Investment interest expense paid or accrued in 2008. See instructions” field contains 12,500
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“2. Disallowed investment interest expense from 2007 Form 4952, line 7” field contains 0
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“3. Total investment interest expense. Add lines 1 and 2” field contains 12,500
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| Under“Part II: Net Investment Income”:
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“4a. Gross income from property held for investment (excluding any net gain from the disposition of property held for investment)” field contains 3,000
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“4b. Qualified dividends included on line 4a” field is blank
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“4c. Subtract line 4b from line 4a” field contains 3,000
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“4d. Net gain from the disposition of property held for investment” field contains 10,000
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“4e. Enter the smaller of line 4d or your net capital gain from the disposition of property held for investment. See instructions” field contains 9,000
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“4f. Subtract line 4e from line 4d” field contains 1,000
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“5. Investment expenses. See instructions” field contains 980
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“6. Net investment income. Subtract line 5 from line 4f. If zero or less, enter 0” field contains 12,020
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| Under“Part III: Investment Interest Expense Deduction”:
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“7. Disallowed investment interest expense to be carried forward to 2008. Subtract line 6 from line 3. If zero or less, enter
0” field contains 480
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“8. Investment interest expense deduction. Enter the smaller of line 3 or 6. See instructions” field contains 12,020
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