During the year, Rachel earned $18,000 of interest income on private activity bonds that she had purchased
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During the year, Rachel earned $18,000 of interest income on private activity bonds that she had purchased in 2008. She also incurred interest expense of $7,000 in connection with amounts borrowed to purchase the bonds. What is the effect on Rachel’s taxable income? Could there be a related beneficial effect in calculating AMTI? Explain.
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Related Book For
South Western Federal Taxation Individual Income Taxes 2017
ISBN: 9781305873988
40th Edition
Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young, Nellen
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