Problem 11-64 (LO. 10) 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: Investment and annuity income $11,000 Long-term capital gain on sale of stock 3,500 Real estate tax on the investment land 800 Helen is unmarried, does not itemize her deductions and does not elect to treat the capital gain as investment income. Helen did not have a disallowed investment interest expense amount from the prior year. a. Helen's net investment income is $ 10,200 Helen s investment interest expense deduction in the current year is 1,800 X > Feedback Check My Work Taxpayers frequently borrow funds they use to acquire investment assets. When the interest expense is large relative to the income from the investments, substantial tax benefits may result. Congress has therefore limited the deductibility of interest on funds borrowed for the purpose of purchasing or continuing to hold investment property