During the year, Rachel earned $18,000 of interest income on 2011 private activity bonds. She incurred interest

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During the year, Rachel earned $18,000 of interest income on 2011 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 Rachel's taxable income? On her AMT? Could there be a related beneficial effect in calculating AMTI? Explain.
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Related Book For  answer-question

South-Western Federal Taxation 2018 Comprehensive

ISBN: 9781337386005

41st Edition

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

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