Investment interest expense which is disallowed because it exceeds the taxpayer's net investment income may be carried over and treated as incurred in subsequent years.

Question

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According to IRS regulations, investment interest expense disallowed in a given year due to the limitation of exceeding net investment income can be carried forward to future years and treated as if it were incurred in those subsequent years. This is known as the investment interest expense carryover.

Investment Interest Expense Which Is Disallowed Because It Exceeds the Taxpayer's