Brandon and Jane Forte File a Joint Tax Return and Decide

question 86

Multiple Choice

Brandon and Jane Forte file a joint tax return and decide to itemize their deductions. The Fortes' income for the year consists of $120,000 in salary, $1,000 interest income, $1,500 nonqualifying dividends, and $1,100 long-term capital gains. The Fortes' expenses for the year consist of $3,000 in investment interest expense and $900 in tax preparation fees. Assuming that the Fortes' marginal tax rate is 32 percent and they make no special elections, what is the amount of investment interest expense deduction for the year?

• A)$0.
• B)$1,000.
• C)$2,500.
• D)$3,000.
• E)None of the choices are correct.

---

Definitions:

Detached

Being impartial or disinterested; aloof or emotionally uninvolved.

Career Choice

The process of deciding on a specific path or profession to pursue based on one's interests, values, and skills.

Negative Attitude

A pervasive pattern of thinking or feeling about people, situations, or oneself in a pessimistic or detrimental manner, often leading to adverse outcomes or behaviors.

Work/Life

The balance or integration of work and personal life, focusing on managing career and personal or family needs effectively.