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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16544
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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In 2011, I had $300,000 in part III of interest expense deduction

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In 2011, I had $300,000 in part III of interest expense deduction in line 7; i.e. to be carried forward to 2012. Assume it is carried forward to 2013, how can I ever take advantage of it?

Megan C :

Thank you for your question, and thanks for using JustAnswer.com

Megan C :

Is this for investment interest expense?

Megan C :

If so, you can take advantage of that interest by earning investment income to offset it.

Customer:

Are dividend income investment income?

Customer:

So, if I buy a lot of dividend paying stocks and earn dividend, will that help a lot?

Megan C :

Yes, dividends are investment income. Yes, earning a dividend will help you use up this loss.

Customer:

I have about $300,000 from prior years that have been carried forward but I did not use that in 2012.

Megan C :

Yes

Customer:

Ok. that helps.

Customer:

Thanks.

Megan C :

You're welcome. Is there anything else I can help you with today?

Customer:

I also understand that only qualifying dividends work in that case.

Megan C :

No, dividends that you get long term gain treatment on work too.

Customer:

Ok thanks. Thanks for now.

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