Seth had interest income of $31,000, investment expenses of $28,000, and a long-term capital gain of $8,000 on an investment. In calculating his net investment income, Seth may deduct a maximum of $11,000 investment interest.

Question

Quizplus · Accepted Answer

Seth can deduct up to $11,000 of investment interest, which would leave him with a net investment income of $20,000 ($31,000 interest income - $11,000 investment interest deduction + $8,000 long-term capital gain - $28,000 investment expenses).

Seth Had Interest Income of $31,000, Investment Expenses of $28,000