Question: Your clients have asked you about being able to deduct investment interest during 2019. They took out a loan to purchase a commercial lot that

Your clients have asked you about being able to deduct investment interest during 2019. They took out a loan to purchase a commercial lot that they will hold for investment and plan on selling in a few years. The interest paid on the loan in 2019 is $5,000. They plan on having about $26,000 in itemized deductions not counting the $5,000 interest deduction. They do not have any investment income this year.

How will their investment interest deduction be calculated? Can any be deducted for 2019 or any future years if applicable?

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solution The interest payments made on a mortgage can be claimed as a tax deduction on the borrowers ... View full answer

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