Form 4952 Investment Interest Expense Deduction 2011

Summary: This is an example of Form 4952 (2011) 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 2011. See instructions field contains 12,500
- 2. Disallowed investment interest expense from 2010 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. Qualified dividends included on line 4a field is blank
- 4c. Subtract line 4b from line 4a field contains 3,000
- 4d. Net gain from the disposition of property held for investment field contains 10,000
- 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
- 4f. Subtract line 4e from line 4d field contains 1,000
- 4g. Enter the amount from lines 4b and 4e that you elect to include in investment income. See instructions field contains 9,000
- 4h. Investment income. See instructions field contains13,000
- 5. Investment expenses. See instructions field contains 980
- 6. Net investment income. Subtract line 5 from line 4h. If zero or less, enter 0 field contains 12,020
Under Part III: Investment Interest Expense Deduction:
- 7. Disallowed investment interest expense to be carried forward to 2012. Subtract line 6 from line 3. If zero or less, enter 0 field contains 480
- 8. Investment interest expense deduction. Enter the smaller of line 3 or 6. See instructions field contains 12,020

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