Which of the Following Statements Is True Regarding the Deductibility

question 35

Multiple Choice

Which of the following statements is true regarding the deductibility of investment interest expense?

• A)Deductible in full subject to the 2% of AGI floor that applies to miscellaneous itemized deductions.
• B)Deductible only to the extent of net investment income, excess amounts cannot be carried forward and thus are non-deductible.
• C)Deductible only to the extent of the interest on a principal amount that does not exceed $1,000,000.
• D)Deductible only to the extent of net investment income; any excess amounts can be carried forward indefinitely.

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Definitions:

Optometrist

A healthcare professional who provides primary vision care, ranging from sight testing and correction to the diagnosis, treatment, and management of vision changes.

Lens

The transparent disk-shaped structure behind the iris and the pupil that changes shape as it focuses on objects at varying distances.

Cornea

The transparent front part of the eye that covers the iris, pupil, and anterior chamber, providing most of the eye's optical power.

Pupil

The adjustable opening in the center of the iris of the eye, through which light enters and is focused on the retina.