Tony is married and files a joint tax return for 2011.He has investment interest expense of $95,000 for a loan made to him in 2011 to purchase a parcel of unimproved land.His income from investments [dividends (not qualified) and interest] totaled $18,000.Tony paid $3,600 of real estate taxes on the unimproved land.Tony also has a $4,500 net long-term capital gain from the sale of stock held as an investment.Calculate Tony's maximum investment interest deduction for 2011.
A) $95,000.
B) $22,500.
C) $18,900.
D) $18,000.
E) None of the above.
Correct Answer:
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