Reporting investment interest expense on individual Form 4952 in ProConnect Tax

This article will help to understand how investment interest expense is calculated and why it shows on Line 14 of Schedule A.

To report an investment interest expense:

1. Go to the Input Return tab.
2. Select Deductions > Itemized Deductions (Sch A) from the left menu.
3. Go to the Interest tab from the top section menu.
4. Scroll to the field Investment Interest and expand the input field with the + icon.
5. Enter a Description and Amount.

Investment interest expense shows on Schedule A, Line 14

• ProConnect Tax carries the amounts to Form 4952. When investment interest exceeds net investment income, the program includes the deductible part on Schedule A. 
• If the investment interest is fully deductible, then Form 4952 won't generate and the deduction will flow to Schedule A, Line 14.

Additional notes

• Additional inputs can be found in the Deductions section in the Investment Interest (4952) screen.
• Investment interest from a passthrough K-1 should be entered in the applicable passthrough K-1 screen in the Income section: Partnership Info - 1065 K-1, S-corp Info 1120S K-1, Estate or Trust Info 1041 K-1.