For the current tax year, David, a married taxpayer filing a joint return, reported the following: What is the maximum amount that David can deduct in the current year as investment interest expense?

Question

Quizplus · Accepted Answer

The maximum amount that David can deduct as investment interest expense is limited to his net investment income, which is the excess of his investment income over his investment expenses. David reported $22,000 in investment income and $1,000 in investment expenses, which gives him a net investment income of $21,000. Therefore, he can deduct up to $21,000 as investment interest expense for the current tax year.

For the Current Tax Year, David, a Married Taxpayer Filing