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:
“They were evidently small men, all wind and quibbles, flinging out their chaffy grain to us with far less interest than a farm- wife feels as she scatters corn to her fowls.”
—D.H. (David Herbert)
“Though Americans talk a good deal about the virtue of being serious, they generally prefer people who are solemn over people who are serious. In politics, the rare candidate who is serious, like Adlai Stevenson, is easily overwhelmed by one who is solemn, like General Eisenhower. This is probably because it is hard for most people to recognize seriousness, which is rare, especially in politics, but comfortable to endorse solemnity, which is as commonplace as jogging.”
—Russell Baker (b. 1925)