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Level 1
March 29, 2022
Question

Taxpayer bought a building lot. Investment interest on the lot was disallowed and carried forward. Lot has been sold. Should the carried forward investment interest expense be added to the basis?

  • March 29, 2022
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1 reply

sjrcpa
Level 15
March 29, 2022

No.

It may be deductible in the year of sale subject to the usual investment interest rules.

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