For 2018, Thomas, a single parent, reported the following amounts relating to his investments: Net investment income

Question:

For 2018, Thomas, a single parent, reported the following amounts relating to his investments:

Net investment income .......................................................................................... $7,000

Interest expense on a loan to purchase stocks ..................................................... 2,000

Interest expense on funds borrowed to purchase land for investment ............ 6,000

What is the maximum amount that Thomas could deduct in 2018 as investment interest expense?

a. $1,000

b. $2,000

c. $6,000

d. $7,000

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...

Fantastic news! We've Found the answer you've been seeking!