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Posted by R. C. White on December 9, 2007, 9:50 pm
Please log in for more thread options Hi, Scott.
As JM said, this is Investment Interest Expense and it is deductible. ;<)
Maybe. :^{
As JM also said, you will need to have TT complete Form 4952, Investment
Interest Expense Worksheet, to be sure that you have enough investment
income to cover this expense. IF you do, then the deductible amount will go
to Schedule A and be added your other itemized deductions to see if you have
more total deductions than the Standard Deduction. So you may or may not
wind up with a tax benefit from the interest expense.
Remember, I've been retired for well over a decade, so check with your own
CPA for current tax rules.
RC
--
R. C. White, CPA
San Marcos, TX
(Retired. No longer licensed to practice public accounting.)
rc@grandecom.net
Microsoft Windows MVP
(Currently running Quicken 2008 Deluxe in Vista Ultimate x64)
> I'm using Q08Prmr on WinXP.
>
> I have several advisery accounts setup with our financial planner.
> Recently she (with my persmission) sold some funds and bought others to
> replace them. The brokerage firm executed the buy before the sell was
> complete so there was a shortfall for the funds for about 3 days. I was
> charged 9.5% interest for those three days. This is in a non-qualified
> brokerage account. It isn't a retirement account. In Quicken the
> downloaded transaction is listed as a Withdrawl but I suspect for tax
> purposes this may be best listed as something else. This is a cost that
> can be deducted. I use TT every year so it's important for me to get this
> right so TT knows how to handle it. Would this interest transaction be
> more appropriate as a Margin Interest Expense transaction?
>
> For the record I do not care about the cost of the interest. Although I
> will let me advisor know that it happened in case she isn't aware of it.
>
> Cheers,
> Scott
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