In my case, I can deduct the interest paid on my Equity-Line as “investment interest” on schedule A, line 9. However, please confirm whether the following discussion seems valid:
It would be great if I could simply enter that amount there on schedule A. However, according page A-9 of “Instructions for Schedule A,” it appears that instead of entering the amount on line 9, I MUST enter it on Form 4952. (That is because I had NO “investment income [nor dividends/interest]” during 2018, and therefore my interest expense is NOT “less than my investment income.”)
Unfortunately, since I must enter it on Form 4952 (and since I had no “investment income”), then Form 4952 will result in my entire amount of investment interest as being treated as “disallowed investment interest” that must be carried forward to 2019.
It would be great if I could simply enter that amount there on schedule A. However, according page A-9 of “Instructions for Schedule A,” it appears that instead of entering the amount on line 9, I MUST enter it on Form 4952. (That is because I had NO “investment income [nor dividends/interest]” during 2018, and therefore my interest expense is NOT “less than my investment income.”)
Unfortunately, since I must enter it on Form 4952 (and since I had no “investment income”), then Form 4952 will result in my entire amount of investment interest as being treated as “disallowed investment interest” that must be carried forward to 2019.