During the year, Fran earned $18,000 of interest income on 2005 private activity bonds. She incurred interest

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During the year, Fran earned $18,000 of interest income on 2005 private activity bonds. She incurred interest expense of $7,000 in connection with amounts borrowed to purchase the bonds. What is the effect of these items on Fran's taxable income? On her AMT? Could there be a related beneficial effect in calculating AMTI? Explain.
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South Western Federal Taxation 2014 Comprehensive Volume

ISBN: 9781285180922

37th Edition

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young

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