Conflicting info b/t Becker/Ninja notes re:corporate investment interest expense

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  • October 17, 2012 at 2:56 pm #174365
    Anonymous
    Inactive

    Could anyone clarify?

    According to the 2011 Becker REG, Lecture 3 class notes (II, H): “Investment interest expense is limited to ‘net (taxable) investment income’ – same rule as individuals.”

    According to the REG Ninja notes: “Unlike individual taxation, investment interest expense is not limited to investment income.”

    Are the Becker notes out of date, maybe? Or am I just missing something? Lol!

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  • October 19, 2012 at 12:13 pm #379813
    Anonymous
    Inactive

    Jeff? Anyone?

    October 19, 2012 at 12:42 pm #379814
    jeff
    Keymaster

    Good question.

    Corporations deduct interest expense on Form 1120, Line 18.

    Individuals deduct it on Schedule A, but use Form 4952 which takes net investment income into account.

    Hope that is helpful,

    Jeff

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