Form 4952 Investment Interest Expense Deduction 2004. Summary: This is an example of Form 4952 (2004) as pertains to the description in the text. The line items are completed as follows:
“Name(s) shown on return’ field contains Jane Smith
“Identifying number’ field contains 111-00-1111
Under “Part I: Total Investment Interest Expense’:
“1. Investment interest expense paid or accrued in 2003. See instructions’ field contains 12,500
“2. Disallowed investment interest expense from 2002 Form 4952, line 7’ field contains 0
“3. Total investment interest expense. Add lines 1 and 2’ field contains 12,500
Under “Part II: Net Investment Income’:
“4a. Gross income from property held for investment (excluding any net gain from the disposition of property held for investment)’ field contains 3,000
“4b. Net gain from the disposition of property held for investment’ field contains 9,000
“4c. Net capital gain from the disposition of property held for investment’ field contains 9,000
“4d. Subtract line 4c from line 4b. If zero or less, enter 0’ field contains 0
“4e. Enter the amount from line 4c that you elect to include in investment income. Do not enter more than the amount on line 4b. See instructions’ field contains 9,000
“4f. Investment income. Add lines 4a, 4d, and 4e’ field contains 12,000
“5. Investment expenses. See instructions’ field contains 980
“6. Net investment income. Subtract line 5 from line 4f. If zero or less, enter 0’ field contains 11,020
Under “Part III: Investment Interest Expense Deduction’:
“7. Disallowed investment interest expense to be carried forward to 2004. Subtract line 6 from line 3. If zero or less, enter 0’ field contains 1,480
“8. Investment interest expense deduction. Enter the smaller of line 3 or 6. See instructions’ field contains 11,020