Ramon incurred $83,100 of interest expense related to his investments in 2011.His investment income included $34,500 of interest and a $37,500 net capital gain on the sale of securities.What is the maximum amount of Ramon's investment interest expense deduction in 2011?

Question

Quizplus · Accepted Answer

Ramon's investment interest expense deduction is limited to the amount of his net investment income, which is $34,500 of interest income and $37,500 of net capital gain, for a total of $72,000. Therefore, the maximum amount of Ramon's investment interest expense deduction in 2011 is $72,000.

Ramon Incurred $83,100 of Interest Expense Related to His Investments