Investment Interest Expense
Your investment interest expense deductible is limited to the amount of investment income received, such as dividends and interest. If an investment is held for both business and personal gain, then any income received must be allocated proportionately between them. Personal investment interest expense is reported on Schedule A of the 1040.
Investment dictionary. Academic. 2012.
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Form 4952: Investment Interest Expense Deduction — A tax form distributed by the Internal Revenue Service (IRS) used to determine the amount of investment interest expense that can be deducted and any interest expense that can be carried forward to a future tax year. Form 4952 limits the… … Investment dictionary
Interest Expense — The amount reported by a company or individual as an expense for borrowed money. In the U.K. it is called interest payable . Interest is calculated as a percentage of the amount of debt for each period of time. Points paid for a mortgage are a… … Investment dictionary
Construction Interest Expense — Any interest that is paid during the construction phase of a building or other tangible property. The interest may be incurred directly as the result of a construction loan. Construction interest expense is treated differently than other types of … Investment dictionary
Business Interest Expense — The cost of interest that is charged on business loans used to operate the business. Business interest is deductible as an ordinary business expense. The loan must be used to either purchase assets for the business or pay for business expenses.… … Investment dictionary
expense — ex‧pense [ɪkˈspens] noun 1. [countable, uncountable] ACCOUNTING an amount of money that a business or organization has to spend on something: • Most advertisers look upon advertising as an expense and not an investment, which is a mistake. • The… … Financial and business terms
Interest Coverage Ratio — A ratio used to determine how easily a company can pay interest on outstanding debt. The interest coverage ratio is calculated by dividing a company s earnings before interest and taxes (EBIT) of one period by the company s interest expenses of… … Investment dictionary
Expense — Expenses redirects here. For the row about members expenses in the UK Parliament which started about May 2009, see United Kingdom Parliamentary expenses scandal. Accountancy Key concepts Accountant · Accounting period ·… … Wikipedia
expense — I (Roget s IV) n. 1. [Whatever is paid out] Syn. expenditure, cost, price, outlay, charge, fee, payment, outgo, disbursement, alimony, child support, value, worth, sum, amount, risk, capital, rate, custom, excise, tax, carrying charge, budgeted… … English dictionary for students
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Net Interest Margin — A performance metric that examines how successful a firm s investment decisions are compared to its debt situations. A negative value denotes that the firm did not make an optimal decision, because interest expenses were greater than the amount… … Investment dictionary