Interest Deduction Generally
Sec. 163 of the IRC permits deductions for interest paid or accrued during the taxable year. However, the Tax Reform Act of 1986 severely limited the scope of this interest deduction. In effect, the Tax Reform Act changed § 163 from a general rule for deduction into one of non-deduction with six discreet exceptions. These exceptions, listed in § 163(h)(2), include exceptions for active business interest, taxable investment interest, passive activity business interest, estate tax interest, and education loan interest along with the qualified residence interest.
Read more about this topic: Qualified Residence Interest
Famous quotes containing the words interest and/or generally:
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—George Eliot [Mary Ann (or Marian)
“I know as well as any one, [the devil] is an adversary, whom if we resist, he will fly from us—but I seldom resist him at all; from a terror, that though I may conquer, I may still get a hurt in the combat—so ... instead of thinking to make him fly, I generally fly myself.”
—Laurence Sterne (1713–1768)