For the year ended December 31,2017,Terrance,a single professional,reported the following: Net investment income from interest,$14,000
Other expenses unrelated to the generation of interest,$6,000
Investment interest expense on funds borrowed in 2016 to purchase stocks and bonds,$15,000
What is the maximum amount that Terrance can deduct in 2017 as investment interest expense?

Question

Quizplus · Accepted Answer

The maximum amount Terrance can deduct as investment interest expense is limited to his net investment income, which is $14,000. The investment interest expense deduction cannot exceed the net investment income.

For the Year Ended December 31,2017,Terrance,a Single Professional,reported the Following