void.no.spam.com[at]gmail.com wrote:
- quote -

Line 4a, Gross Income from Property Held for Investment. It
includes interest income that does not derive from a trade or
business. That's where you add up your bank interest and the
broker interest. That line also includes ordinary dividends and a
whole bunch of other stuff. See the 4952 instructions that come
with the form.

You are correct that the margin interest goes on Line 1 only if
it represented investment interest expense. E.g., If you borrowed
on your margin account to buy a personal car, then that interest
is nondeductible personal interest. If you borrowed on your
margin account to buy securities, that is investment interest.

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My broker charged me about $800 of margin interest last year. My
broker also gave me about $150 of interest income last year,
presumably for having cash sit in the account (and also possibly for
holding profitable short positions, although I'm not 100% certain they
pay interest for that).

So I will include the $800 of margin interest on line 1 of Form 4952.
Can I include the $150 of interest income somewhere in the Net
Investment Income section?

I also had about $100 of interest income from my checking account and
money market account. Does that count as Net Investment Income?

Basically, I would like to include everything on line 8a (taxable
interest) of Form 1040 in the Net Investment Income section of Form
4952. Can I do that?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >