Business, 24.11.2021 01:40 jazzy2742

Helen Derby borrowed $150,000 to acquire a parcel of land to be held for investment purposes. During the current year, she reported AGI of $90,000 and paid interest of $12,000 on the loan. Other items related to Helen's investments include the following: a. Interest and annuity income $11,000
b. Long-term capital gain on sale of stock 3,500
c. Real estate tax on the investment land 800
d. Helen is unmarried, does not itemize her deductions and does not elect to treat the capital gain as investment income.
e. Helen did not have a disallowed investment interest expense amount from the prior year.

Required:
1. Determine Helen's investment interest deduction for the current year.
2. Discuss the treatment of the portion of Helen's investment interest that is disallowed in 2017.

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Helen Derby borrowed $150,000 to acquire a parcel of land to be held for investment purposes. During...

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