During the year,Earl earned investment income of $13,500,incurred investment interest expense of $7,700,and other investment expenses of $9,000.Earl may carry over $3,200 of investment interest and deduct it in the future.

Question

Quizplus · Accepted Answer

According to the given information, Earl earned investment income of $13,500 but incurred investment interest expense of $7,700 and other investment expenses of $9,000. Hence, his total investment expenses amount to $16,700. Since his investment interest expense exceeded his investment income, he may carry over $3,200 of investment interest and deduct it in the future, as per the tax laws. Thus, the statement is true.

During the Year,Earl Earned Investment Income of $13,500,incurred Investment Interest