OMB No. 1545-0191 
                                     Investment Interest Expense Deduction 
Form  4952 
                                           Go to www.irs.gov/Form4952 for the latest information.
Department of the Treasury                                                                                      Attachment2022
Internal Revenue Service                                  Attach to your tax return.                            Sequence No. 51 
Name(s) shown on return                                                                                    Identifying number 

Part I        Total Investment Interest Expense 
1     Investment interest expense paid or accrued in 2022 (see instructions)         . .    . .  . . . . . . 1 
2     Disallowed investment interest expense from 2021 Form 4952, line 7  .          . .    . .  . . . . . . 2 
3     Total investment interest expense. Add lines 1 and 2 .           . .   . . .   . .    . .  . . . . . . 3 
Part II       Net Investment Income 
4 a   Gross income from property held for investment (excluding any net gain from
      the disposition of property held for investment)  .   .    .     . .   . . .   . .      4a 
b     Qualified dividends included on line 4a  .     .  . . .    .     . .   . . .   . .      4b 
c     Subtract line 4b from line 4a      . . .     . .  . . .    .     . .   . . .   . .    . .  . . . . . . 4c 
d     Net gain from the disposition of property held for investment  .       . . .   . .      4d 
e     Enter  the  smaller  of  line  4d  or  your  net  capital  gain  from  the disposition
      of property held for investment. See instructions  .  .    .     . .   . . .   . .      4e 
f     Subtract line 4e from line 4d      . . .     . .  . . .    .     . .   . . .   . .    . .  . . . . . . 4f 
g     Enter the amount from lines 4b and 4e that you elect to include in investment income. See instructions 4g
h     Investment income. Add lines 4c, 4f, and 4g  .      . .    .     . .   . . .   . .    . .  . . . . . . 4h 
5     Investment expenses (see instructions)  .      .  . . .    .     . .   . . .   . .    . .  . . . . . . 5 
6     Net investment income. Subtract line 5 from line 4h. If zero or less, enter -0-  .      .  . . . . . . 6 
Part III      Investment Interest Expense Deduction 
7     Disallowed investment interest expense to be carried forward to 2023. Subtract line 6 from line 
      3. If zero or less, enter -0-  .   . . .     . .  . . .    .     . .   . . .   . .    . .  . . . . . . 7 
8     Investment interest expense deduction. Enter the smaller of line 3 or line 6. See instructions  .    . 8 
For Paperwork Reduction Act Notice, see page 4.                                  Cat. No. 13177Y                Form 4952 (2022) 

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Form 4952 (2022)                                                                                                                                   Page  3 
Section references are to the Internal Revenue Code unless otherwise          Exception. A working interest in an oil or gas property that you held 
noted.                                                                        directly or through an entity that didn’t limit your liability is property held 
                                                                              for investment, but only if you didn’t materially participate in the activity.
Future Developments
For the latest information about developments related to Form 4952 and        Part II—Net Investment Income
its instructions, such as legislation enacted after they were published,      Line 4a
go to www.irs.gov/Form4952.                                                   Gross income from property held for investment includes income, 
                                                                              unless derived in the ordinary course of a trade or business, from 
General Instructions                                                          interest, ordinary dividends (except Alaska Permanent Fund dividends), 
Purpose of Form                                                               annuities, and royalties. Include investment income reported to you on 
Use Form 4952 to figure the amount of investment interest expense you         Schedule K-1 from a partnership or an S corporation. Also include net 
can deduct for 2022 and the amount you can carry forward to future            investment income from an estate or a trust. 
years. Your investment interest expense deduction is limited to your net      Also include on line 4a (or 4d, if applicable) net passive income from a 
investment income.                                                            passive activity of a publicly traded partnership (as defined in section 
For more information, see Pub. 550, Investment Income and                     469(k)(2)). See Regulations sections 1.469-10 and 1.7704-1 (including 
Expenses.                                                                     the transition rule of section 1.7704-1(l)) for details. 
                                                                              Net income from certain passive activities, such as rental of 
Who Must File                                                                 substantially nondepreciable property, may have to be recharacterized 
If you are an individual, estate, or a trust, you must file Form 4952 to      and included on line 4a. For details, see Pub. 925, Passive Activity and 
claim a deduction for your investment interest expense.                       At-Risk Rules, or Regulations section 1.469-2(f)(10). 
Exception. You don’t have to file Form 4952 if all of the following apply.    If you are filing Form 8814, Parents’ Election To Report Child’s 
• Your investment income from interest and ordinary dividends minus           Interest and Dividends, part or all of your child’s income may be 
any qualified dividends is more than your investment interest expense.        included on line 4a. See the instructions for Form 8814 and Pub. 550 for 
• You don’t have any other deductible investment expenses.                    details. 
• You don’t have any carryover of disallowed investment interest                          Don’t include on line 4a any net gain from the disposition of  
expense from 2021.                                                                        property held for investment. Instead, enter it on line 4d. 
Allocation of Interest Expense                                                ▲!
                                                                              CAUTION
If you paid or accrued interest on a loan and used the loan proceeds for 
more than one purpose, you may have to allocate the interest. This is         Line 4b 
necessary because different rules apply to investment interest, personal      Enter the portion of ordinary dividends included on line 4a that are 
interest, trade or business interest, home mortgage interest, and passive     qualified dividends. For the definition of qualified dividends, see the 
activity interest. See Pub. 535, Business Expenses.                           instructions for Form 1040, line 3a (or Form 1041, line 2b). 
                                                                              Line 4d 
Specific Instructions                                                         Net gain from the disposition of property held for investment is the 
Part I—Total Investment Interest Expense                                      excess, if any, of your total gains over your total losses from the  
                                                                              disposition of property held for investment. When figuring this amount, 
Line 1                                                                        include capital gain distributions from mutual funds and capital loss 
Enter the investment interest expense paid or accrued during the tax          carryovers. 
year, regardless of when you incurred the indebtedness. Investment 
interest expense is interest paid or accrued on a loan or part of a loan      Line 4e 
that is allocable to property held for investment (as defined later).         Net capital gain from the disposition of property held for investment is 
Include investment interest expense reported to you on Schedule K-1           the excess, if any, of your net long-term capital gain over your net short-
from a partnership or an S corporation. Include amortization of bond          term capital loss from the disposition of property held for investment. 
premium on taxable bonds purchased after October 22, 1986, but                Capital gain distributions from mutual funds are treated as long-term 
before January 1, 1988, unless you elected to offset amortizable bond         capital gains. 
premium against the interest payments on the bond. A taxable bond is a        Note: If line 4e is more than zero and you enter an amount on line 4g, 
bond on which the interest is includible in gross income.                     see the Note in the line 4g instructions, later.
Investment interest expense doesn’t include any of the following.             Line 4g 
• Personal interest under section 163(h), including qualified residence       In general, qualified dividends and net capital gain from the disposition 
interest.                                                                     of property held for investment are excluded from investment income. 
• Interest expense that is properly allocable to a passive activity.          But you can elect to include part or all of these amounts in investment 
Generally, a passive activity is any trade or business activity in which      income. 
you don’t materially participate and any rental activity. See the                         The qualified dividends and net capital gain that you elect to  
Instructions for Form 8582, Passive Activity Loss Limitations, for details.               include in investment income on line 4g aren’t eligible to be 
• Any interest expense that is capitalized, such as construction interest         !       taxed at the qualified dividends or capital gains tax rates. 
subject to section 263A.                                                      ▲CAUTION    You should consider the tax effect of using the qualified 
• Interest expense related to tax-exempt interest income under                            dividends and capital gains tax rates before making this 
section 265.                                                                  election. Once made, the election can be revoked only with IRS consent. 
• Interest expense, disallowed under section 264, on indebtedness with        To make the election, enter on line 4g the amount you elect to include 
respect to life insurance, endowment, or annuity contracts issued after       in investment income (don’t enter more than the sum of lines 4b and 4e). 
June 8, 1997, even if the proceeds were used to purchase any property         Also enter this amount on whichever of the following applies. 
held for investment.                                                          •  The Schedule D Tax Worksheet, line 3. 
Property held for investment.Property held for investment includes            •  Schedule D (Form 1041), line 25. 
property that produces income, not derived in the ordinary course of a        •  The Qualified Dividends Tax Worksheet, line 3, in the Instructions for 
trade or business, from interest, dividends, annuities, or royalties. It also Form 1041. 
includes property that produces gain or loss, not derived in the ordinary                 If you file Form 1040 or 1040-SR and enter an amount on 
course of a trade or business, from the disposition of property that                      line 4g, use the Schedule D Tax Worksheet in the 
produces these types of income or is held for investment. However, it         TIP         Instructions for Schedule D (Form 1040) to figure the amount 
doesn’t include an interest in a passive activity.                                        to enter on Form 1040 or 1040-SR, line 16. If you file Form  
                                                                              1041 and enter amounts on lines 4e and 4g, use the Schedule D Tax 
                                                                              Worksheet in the Instructions for Schedule D (Form 1041) to figure the 
                                                                              amount to enter on Form 1041, Schedule G, line 1a.

Form 4952 (2022)                                                                                                                                   Page  4 
Don’t reduce the amount of qualified dividends on Form 1040 or                  to royalties, enter that part on Schedule E (Form 1040). Also, if any part 
1040-SR, line 3a (or Form 1041, line 2b(2)), by any part of the amount on       of the interest is attributable to a trade or business that isn’t a passive 
line 4g.                                                                        activity, enter that part on the schedule where you report other 
                                                                                expenses for that trade or business. 
Note: The amount on line 4g is generally treated as being attributable          Estates and trusts. Enter the amount from line 8 (excluding any amount 
first to net capital gain from property held for investment (line 4e), and      included on Form 6198, line 4—see below) on Form 1041, line 10.  
then to qualified dividends (line 4b). This treatment results in the least      However, if any part of the interest is attributable to a trade or business 
tax being figured for Form 1040 or 1040-SR, line 16 (or Form 1041,              that isn’t a passive activity, enter that part on the schedule where you 
Schedule G, line 1a). However, you can treat less of the amount on line         report other expenses for that trade or business. 
4e as attributable to line 4g and more to line 4b. You may want to do           Form 6198.If any of your deductible investment interest expense is 
this if you are filing Form 1116, Foreign Tax Credit, as your tax after         attributable to an activity for which you aren’t at risk, you must also use 
credits may be lower in certain cases. To do so, enter on the dotted line       Form 6198, At-Risk Limitations, to figure your deductible investment 
next to line 4e “Elec.” and the part of line 4e that you elect to treat as      interest expense. Include the part attributable to the at-risk activity on 
being attributable to line 4g (don’t enter less than the excess of line 4g      Form 6198, line 4. 
over line 4b). You will use this smaller amount instead of the amount on 
line 4e when figuring your tax.                                                 Alternative minimum tax (AMT). Deductible interest expense may be 
                                                                                an adjustment for the AMT. For details, see Form 6251, Alternative 
Generally, you must make this election on a timely filed return,                Minimum Tax—Individuals, or Schedule I (Form 1041). 
including extensions. However, if you timely filed your return without 
making the election, you can make the election on an amended return             Paperwork Reduction Act Notice. We ask for the information on this 
filed within 6 months of the due date of your return (excluding                 form to carry out the Internal Revenue laws of the United States. You 
extensions). Write “Filed pursuant to section 301.9100-2” on the                are required to give us the information. We need it to ensure that you are 
amended return and file it at the same place you filed the original return.     complying with these laws and to allow us to figure and collect the right 
Line 5                                                                          amount of tax. 
Investment expenses are your allowed deductions, other than interest            You aren’t required to provide the information requested on a form 
expense, directly connected with the production of investment income.           that is subject to the Paperwork Reduction Act unless the form displays 
For example, depreciation or depletion allowed on assets that produce           a valid OMB control number. Books or records relating to a form or its 
investment income is an investment expense.                                     instructions must be retained as long as their contents may become 
                                                                                material in the administration of any Internal Revenue law. Generally, tax 
Include investment expenses incurred directly by you or reported to             returns and return information are confidential, as required by section 
you on Schedule K-1 from a partnership, or by an S corporation, but             6103. 
only if you are allowed a deduction on your return for the expense.             The time needed to complete and file this form will vary depending on 
Investment expenses don’t include any deductions used in                        individual circumstances. The estimated burden for individual taxpayers 
determining your income or loss from a passive activity.                        filing this form is approved under OMB control number 1545-0074 and 
             Don’t include any miscellaneous itemized deductions, which         is included in the estimates shown in the instructions for their individual  
             aren’t allowed deductions in tax years beginning after             income tax return. The estimated burden for all other taxpayers who file 
▲!           December 31, 2017, and before January 1, 2026.                     this form is: Recordkeeping , 39 min.; Learning about the law or the 
CAUTION                                                                         form  , 12 min.;  Preparing the form  , 24 min.; and Copying, 
                                                                                assembling ,and sending the form to the IRS , 13 min. 
Part III—Investment Interest Expense Deduction                                  If you have comments concerning the accuracy of these time 
Line 8                                                                          estimates or suggestions for making this form simpler, we would be 
Individuals. Generally, enter the amount from line 8 (excluding any             happy to hear from you. See the instructions for the tax return with 
amount included on Form 6198, line 4—see later) on Schedule A (Form             which this form is filed. 
1040), line 9, even if all or part of it is attributable to a partnership or an 
S corporation. However, if any part of the interest expense is attributable