For 2016, investment interest deduction is limited to:

Question

Quizplus · Accepted Answer

The investment interest deduction is limited to the interest paid on loans or other debt that is used to purchase or carry investment property. The deduction is limited to the amount of investment income received during the year, meaning that investment interest cannot be used to create a net loss on a tax return. Earned income, passive income, and tax payments are not factors in determining the limitation on investment interest deduction. The gain on investment made with borrowed funds also does not affect the limit on investment interest deduction.

For 2016, Investment Interest Deduction Is Limited To