The investment interest expense deduction is limited to the amount of net investment income for the year.

Question

Quizplus · Accepted Answer

This is true. The investment interest expense deduction is subject to a limitation based on the amount of the taxpayer's net investment income for the year. If the net investment income is less than the investment interest expense, the excess cannot be used to offset other types of income (such as wages or business income) and must be carried forward to future years.

The Investment Interest Expense Deduction Is Limited to the Amount