During the Current Year,Martin Purchases Undeveloped Land as an Investment

question 115

Multiple Choice

During the current year,Martin purchases undeveloped land as an investment.Martin intends to rent the land as pastureland and hopefully sell it later for a profit.In the current year,Martin receives no rent but he does pay taxes of $2,800,mortgage interest of $900 and liability insurance of $500.How much of these expenses can Martin deduct (before any limitations) on his current tax return?

• A)$0
• B)$1,400
• C)$3,700
• D)$4,200

---

Definitions:

Auto Fill Options Menu

A feature in spreadsheet software that provides users with choices on how filled data is formatted and applied.

Destination Area

The target location to which data is moved, copied, or saved within a computer system or software application.

Source Area

The location or origin from which data is obtained or drawn.

Auto Fill Options Menu

A feature in spreadsheet and form applications that provides automatic suggestions for completing fields based on previously entered data.