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Form 4952 for Georgia: What You Should Know
Investment Interest Deduction for Fiduciaries — IRS What is Investment Interest Expense Investment interest is the cost of money invested in a business, including interest in stocks, bonds, and other securities. It is taxed as ordinary income on earnings and profits. It also has the effect of offsetting capital losses that are normally treated as ordinary income in the year of the purchase or sale of an investment. Capital gains and income from the sale of other property are taxed at a flat rate on the appreciation in value of those properties. Because of these capital gains or losses, a large amount of investment income can result in tax-free growth.
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