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:
“Science is feasible when the variables are few and can be enumerated; when their combinations are distinct and clear. We are tending toward the condition of science and aspiring to do it. The artist works out his own formulas; the interest of science lies in the art of making science.”
—Paul Valéry (1871–1945)
“While it is generally agreed that the visible expressions and agencies are necessary instruments, civilization seems to depend far more fundamentally upon the moral and intellectual qualities of human beings—upon the spirit that animates mankind.”
—Mary Ritter Beard (1876–1958)