Brandon and Jane Forte File a Joint Tax Return and Decide

question 60

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 $119,500 in salary, $750 interest income, $1,250 nonqualifying dividends, and $750 long-term capital gains. The Fortes' expenses for the year consist of $2,750 in investment interest expense and $850 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)$750.
• C)$2,000.
• D)$2,750.
• E)None of the choices are correct.

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Definitions:

Exosystem

A component of Bronfenbrenner's ecological systems theory, referring to external environments that indirectly influence the individual, such as parents' workplaces or the neighborhood's social conditions.

Chronosystem

In ecological systems theory, it refers to the patterning of environmental events and transitions over the life course, as well as socio-historical circumstances that affect an individual's development.

Environmental Events

Occurrences within the natural or built environment that can influence individuals' behaviors, health, and development.

Sociohistorical Circumstances

The social and historical context or background that influences an individual's life or a community.