Which of the following statements is true regarding the deductibility of investment interest expense?
A) Deductible in full subject to the 2% of AGI floor that applies to miscellaneous itemized deductions.
B) Deductible only to the extent of net investment income, excess amounts cannot be carried forward and thus are non-deductible.
C) Deductible only to the extent of the interest on a principal amount that does not exceed $1,000,000.
D) Deductible only to the extent of net investment income; any excess amounts can be carried forward indefinitely.
Correct Answer:
Verified
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