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

question 1238

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

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Definitions:

S-O-L-E-R

An acronym for a communication model emphasizing five key behaviors: Squarely face the person, Open posture, Lean towards the sender, Eye contact maintained, Relax while listening.

Sound Waves

Vibrations that travel through air or another medium and can be heard when they reach a person's or animal's ear.

Eardrum Vibrate

The movement of the tympanic membrane in response to sound waves, enabling the perception of sound.

Macro-Listening

The practice of understanding the overall context and patterns in spoken communication, beyond individual words or phrases.