On February 1, 2019, Slim Jim borrowed $40,000 from his HELOC at a simple Interest of...
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On February 1, 2019, Slim Jim borrowed $40,000 from his HELOC at a simple Interest of 6% and used the fonds to purchase a portfolio of equities that met the criteria for the Interest-experise deduction. He sold the entire portfollo exactly 7 months later (September 1, 2019) for $34,000 which he deposited onto the HELOC Exactly two months later, he borrowed another $24,000 from his HELOC and purchased a new portfolio of equities that also met the criteria for the interest- expense deduction and held them for the rest of the year. Assuming that Slim did not make any principal payments to the HELOC in 2019 other than the lump sum resulting from the sale of the equities which he deposited to the HELOC on September 1, 2019, what amount of interest cost could he deduct against any form of income reported on his tax return for 2019? OA) $0 B) $1,640 OC) $1,760 OD) $1,700 On February 1, 2019, Slim Jim borrowed $40,000 from his HELOC at a simple Interest of 6% and used the fonds to purchase a portfolio of equities that met the criteria for the Interest-experise deduction. He sold the entire portfollo exactly 7 months later (September 1, 2019) for $34,000 which he deposited onto the HELOC Exactly two months later, he borrowed another $24,000 from his HELOC and purchased a new portfolio of equities that also met the criteria for the interest- expense deduction and held them for the rest of the year. Assuming that Slim did not make any principal payments to the HELOC in 2019 other than the lump sum resulting from the sale of the equities which he deposited to the HELOC on September 1, 2019, what amount of interest cost could he deduct against any form of income reported on his tax return for 2019? OA) $0 B) $1,640 OC) $1,760 OD) $1,700
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Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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