- 3 - Part I. Total Investment Interest Expense Line 1. Investment interest expense paid or accrued in 1997 $2,505 Line 2. Disallowed investment interest expense from 1996 Form 4952, line 7 24,216 Line 3. Total investment interest expense 26,721 Part II. Net Investment Income Line 4a. Gross income from property held for investment (excluding any net gain from the disposition of property held for investment) [1]5,044 Line 4b. Net gain from the disposition of property held for investment $114,738 Line 4c. Net capital gain from the disposition of property held for investment 65,721 Line 4d. Subtract line 4c from line 4b 49,017 Line 4e. Enter all or part of the amount on line 4c that you elect to include in investment income 0 Line 4f. Investment Income. Add lines 4a, 4d, and 4e. 54,061 Line 5. Investment expenses 0 Line 6. Net investment income. Subtract line 5 from line 4f. 54,061 Part III. Investment Interest Expense Deduction Line 7. Disallowed investment interest expense to be carried forward to 1998. Subtract line 6 from line 3. 0 Line 8. Investment interest expense deduction. Enter the smaller of line 3 or 6. 26,721 1 This is the total amount of petitioners’ interest ($1,075) and dividend ($3,969) income reported on Schedule B. Petitioners calculated most of the lines on Form 4952 from Schedule D, column f, where they reported the following amounts: Line 1. Short-term capital gains and losses$4,002 Line 2. Enter your short-term totals, if any, from Schedule D-1, line 2 45,015 Line 7. Net short-term capital gain or (loss) $49,017 Line 8. Long-term capital gains and losses(3,601) Line 9. Enter your long-term totals, if any, from Schedule D-1, line 9 69,322 Line 11. Gain from Form 4797, Part I * * * [1]12,751 Line 14. Long-term capital loss carryover(141,621) Line 16. Net long-term capital gain or (loss) (63,149) 1 This gain resulted from petitioners’ sale of a condominium that was sec. 1250 property and, therefore, was not included as an item of investment income. See sec. 163(d)(4)(D).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011