Jared earned investment income of $22,000 and incurred investment interest expense of $14,000 during the year.He incurred other investment expenses of $7,000 during the year.Jared may deduct $14,000 of investment interest in the current year.

Question

Quizplus · Accepted Answer

The investment interest expense that Jared may deduct is limited to the amount of investment income earned during the year, which is $22,000. Therefore, he may deduct $14,000 of investment interest expense in the current year. The other investment expenses of $7,000 do not affect this calculation.

Jared Earned Investment Income of $22,000 and Incurred Investment Interest