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Helen Derby borrowed $150,000 to acquire a parcel of land to be held for investment purposes. During the current year, she reported AGI of $90,000
Helen Derby borrowed $150,000 to acquire a parcel of land to be held for investment purposes. During the current year, she reported AGI of $90,000 and paid interest of $12,000 on the loan. Other items related to Helen's investments include the following:
Interest and annuity income -------- $11,000
Long-term capital gain on sale of stock ----------- $3,500
Real estate tax on the investment land ----------- $200
- Determine Helen's investment interest deduction for the current year.
- Discuss the treatment of the portion of Helen's investment interest that is disallowed in 2017.
- Complete Helen's Form 4952 for the current year. For this purpose, assume that she chooses not to include the long-term capital gain as investment income. Her Social Security Number is 123-45-6789.
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