Indicate the amount (if any) that Josh can deduct as an ordinary and necessary business deduction in
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a. Josh borrowed $92,000 from First State Bank using his business assets as collateral. He used the money to buy City of Blanksville bonds. Over the course of a year, Josh paid interest of $14,300 on the borrowed funds, but he received $11,500 of interest on the bonds.
b. Josh purchased a piece of land for $83,500 in order to get a location to expand his business. He also paid $12,100 to construct a new driveway for access to the property.
Related Book For
Taxation of Individuals and Business Entities 2018 Edition
ISBN: 9781259711831
9th edition
Authors: Brian C. Spilker, Benjamin C. Ayers, John Robinson, Edmund Outslay, Ronald G. Worsham, John A. Barrick, Connie Weaver
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