24. 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 Helens 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	800

1. Determine Helens investment interest deduction for the current year.

2. Discuss the treatment of the portion of Helens investment interest that is disallowed in the current year.

3. Complete Helens 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.

4952 Form Investment Interest Expense Deduction Go to www.irs.gov/Form 4952 for the latest information. Attach to your tax return. Department of the Treasury Internal Revenue Service (99) Name(s) shown on return OMB No. 1545-0191 2019 Attachment Sequence No. 51 Identifying number 1 WN 4c Part 1 Total Investment Interest Expense 1 Investment interest expense paid or accrued in 2019 (see instructions) 2 Disallowed investment interest expense from 2018 Form 4952, line 7 3 Total investment interest expense. Add lines 1 and 2. Part II Net Investment Income 4a Gross income from property held for investment (excluding any net gain from the disposition of property held for investment) 4a b Qualified dividends included on line 4a 4b c Subtract line 4b from line 4a d Net gain from the disposition of property held for investment. 4d e Enter the smaller of line 4d or your net capital gain from the disposition of property held for investment. See instructions. f Subtract line 4e from line 4d g Enter the amount from lines 4b and 4e that you elect to include in investment income. See instructions h Investment income. Add lines 4c, 4f, and 4g Investment expenses (see instructions) 6 Net investment income. Subtract line 5 from line 4h. If zero or less, enter-O- Part III Investment Interest Expense Deduction 7 Disallowed investment interest expense to be carried forward to 2020. Subtract line 6 from line 3. If zero or less, enter-O- 8 Investment interest expense deduction. Enter the smaller of line 3 or line 6. See instructions For Paperwork Reduction Act Notice, see page 4. 4e 4f 4g 4h 5 6 5 7 8 Cat. No. 131777 Form 4952 (2019) 4952 Form Investment Interest Expense Deduction Go to www.irs.gov/Form 4952 for the latest information. Attach to your tax return. Department of the Treasury Internal Revenue Service (99) Name(s) shown on return OMB No. 1545-0191 2019 Attachment Sequence No. 51 Identifying number 1 WN 4c Part 1 Total Investment Interest Expense 1 Investment interest expense paid or accrued in 2019 (see instructions) 2 Disallowed investment interest expense from 2018 Form 4952, line 7 3 Total investment interest expense. Add lines 1 and 2. Part II Net Investment Income 4a Gross income from property held for investment (excluding any net gain from the disposition of property held for investment) 4a b Qualified dividends included on line 4a 4b c Subtract line 4b from line 4a d Net gain from the disposition of property held for investment. 4d e Enter the smaller of line 4d or your net capital gain from the disposition of property held for investment. See instructions. f Subtract line 4e from line 4d g Enter the amount from lines 4b and 4e that you elect to include in investment income. See instructions h Investment income. Add lines 4c, 4f, and 4g Investment expenses (see instructions) 6 Net investment income. Subtract line 5 from line 4h. If zero or less, enter-O- Part III Investment Interest Expense Deduction 7 Disallowed investment interest expense to be carried forward to 2020. Subtract line 6 from line 3. If zero or less, enter-O- 8 Investment interest expense deduction. Enter the smaller of line 3 or line 6. See instructions For Paperwork Reduction Act Notice, see page 4. 4e 4f 4g 4h 5 6 5 7 8 Cat. No. 131777 Form 4952 (2019)