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Tax Planning/investment expense form

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Question
I have earned dividends for 2012 that are about equal to my qualified dividends along with stock losses that exceed both and additional capital loss carryovers. I'm having trouble with the investment expense form that specifies including carryover capital losses.  Should that line requiring the carryover losses be zero or negative?  Does this prevent me from taking advantage of deducting my investment expense so I first get screwed by the losses and then screwed by the IRS again because of them?  Thanks

Answer
Clem - I am a bit confused by your question.

Are you asking about Form 4952 (Investment Interest Expense Deduction)?  Is it lines 4d & 4e that your question pertains to?  If so, the number on line 4d should come from line 16 of Schedule D.  Whatever number appears on that line is what goes on 4d on 4952.

Please clarify.

I hope this helps.

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OWEN S. ARNOFF, EA

Expertise

As an Enrolled Agent, I am fully capable of providing tax advice as it relates to personal and business income taxes. Enrolled Agents are the only Federally licensed tax practitioners and are admitted to practice before all administrative functions of the IRS. My specialty is working with small business owners who file Schedule "C" and helping them to structure their business in such a way as to maximize as many tax advantages as possible. I also enjoy working with individuals who have both routine as well as complex tax situations. I prefer to concentrate on individuals and small business tax planning.

Experience

I have a 25 year background in financial services including tax, bookkeeping, insurance, real estate and securities. I was previously the Chief Financial Officer of a local and national franchise organization. I am currently semi-retired, but used to own (in partnership with another EA) an individual and small business financial engineering firm where I work with nearly 2,500 individuals and small business owners in nearly every state and almost every continent, assisting them in all aspects of their tax and financial well-being. I have prepared or reviewed more than 8,000 tax returns in my career.

Organizations
National Association of Tax Professionals

Publications
http://www.amazon.com/Owen-Arnoff/e/B00BLRIZNU/ref=ntt_dp_epwbk_2

Education/Credentials
Enrolled Agent, Admitted to Practice Before the IRS, Accredited Tax Preparer, Fellow of National Tax Practice Institute, Certified QuickBooks ProAdvisor (1999-2011), Sleeter Group Certified QuickBooks Consultant, Life & Disability Insurance Agent License (California, Texas, Maine), Real Estate Agent License (California); Many years of continuing education in all these fields.

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