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:
“Those people have no real interest in a science who only begin to get excited about it when they themselves have made discoveries in it.”
—Friedrich Nietzsche (1844–1900)
“In any case, raw aggression is thought to be the peculiar province of men, as nurturing is the peculiar province of women.... The psychologist Erik Erikson discovered that, while little girls playing with blocks generally create pleasant interior spaces and attractive entrances, little boys are inclined to pile up the blocks as high as they can and then watch them fall down: “the contemplation of ruins,” Erikson observes, “is a masculine specialty.””
—Joyce Carol Oates (b. 1938)