Article: 50282

Overview

Form 3526 is used to calculate the deductible amount of investment interest expense, as well as any amount eligible for carryforward to future tax years.

Taxpayers may also elect to include net capital gain as investment income for this purpose. However, this election may have different tax implications under California law compared to federal treatment and should therefore be evaluated with care.

Add Form 3526

To add the Form 3526:

1. Go to the State taxes section.
2. Select I’d like to see the forms I’ve filled out or search for a form.
3. In the drop list, select California.
4. Select the General tab.
5. Select 3526 – Investment Interest Expense Deduction to add and open the form.
6. Choose the applicable taxpayer and enter the amount from prior-year disallowed investment interest (if any).
7. Complete the rest of the form and click Save to apply changes.