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:
“My neighbors tell me of their adventures with famous gentlemen and ladies, what notabilities they met at the dinner-table; but I am no more interested in such things than in the contents of the Daily Times. The interest and the conversation are about costume and manners chiefly; but a goose is a goose still, dress it as you will.”
—Henry David Thoreau (1817–1862)
“Poetry presents indivisible wholes of human consciousness, modified and ordered by the stringent requirements of form. Prose, aiming at a definite and concrete goal, generally suppresses everything inessential to its purpose; poetry, existing only to exhibit itself as an aesthetic object, aims only at completeness and perfection of form.”
—Richard Harter Fogle, U.S. critic, educator. The Imagery of Keats and Shelley, ch. 1, University of North Carolina Press (1949)