Question
Indicate the amount (if any) that Josh can deduct as ordinary and necessary business deductions in each of the following situations. a. Josh borrowed $50,000
Indicate the amount (if any) that Josh can deduct as ordinary and necessary business deductions in each of the following situations. |
a. | Josh borrowed $50,000 from the 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 $4,200 on the borrowed funds, but he received $3,500 of interest on the bonds.
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