SNASUSA
Level 1
‎05-21-2025 08:34 PM

Can taxpayer elect to deduct different amount than total investment interest expense?? Here is scenario

Total investment Income ST capital gain152K

Total investment interest 47K

Can taxpayer elect to deduct only 30K as investment interest deduction and carryforward remaining 17K for next year??

If taxpayer can elect to deduct only 30K how do I do it on ProConnect? Where to make adjustment as software is taking full 47K as deduction and not allowing to deduct Less than 47K and pay tax on investment income. Please advise if can be done or not. Thank you.

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Terry53029
Level 15
Level 15
‎05-22-2025 08:34 AM

No you can't pick and choose what income or expense you want to put on your tax return. from pub 17. 

"When Do I Report My Income and Expenses?

You must figure your taxable income on the basis of a tax year. A “tax year” is an annual accounting period used for keeping records and reporting income and expenses. You must account for your income and expenses in a way that clearly shows your taxable income. The way you do this is called an accounting method. This section explains which accounting periods and methods you can use."

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sjrcpa
Level 15
‎05-22-2025 10:58 AM

Asked and answered here

https://accountants.intuit.com/community/proconnect-tax-discussions/discussion/investment-interest-e...

You only need to ask once.


The more I know the more I don’t know.
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