Maria borrowed $5000 @ an interest rate of 5% for 1 year and purchased ABC stock with the loan. At the end of the year, she sold ABC for $6000 and repaid the loan. Explain to Maria whether the interest on the loan is tax deductible. The interest is not tax deductible because the shares were held for less than 2 years. The interest is tax deductible because the gains on the share are taxable. The interest is not tax deductible because the loan was used for speculation. The interest is not tax deductible because the loan period was too short. Question 12