Investment Interest May Be Deducted Only to the Extent of Net

question 37

True/False

Investment interest may be deducted only to the extent of net investment income; interest that cannot be deducted because of this limitation is carried over to the next tax year and treated as having been paid in that year.

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Definitions:

Vocabulary

The set of words known and used by a person in speech and writing.

Private Speech

Verbal communication directed at the self, typical in early childhood, and used for self-guidance and regulation.

Self-Regulation

An individual’s ability to prevent himself or herself from making a dominant, preferred or automatic response in order to perform a nondominant response, such as when a hungry person is served food at a restaurant but waits to eat until everyone at the table has been served.

Precursor

An element, condition, or event that precedes and indicates the approach of something.