Ms Lopez Paid $7,260 Interest on a Mortgage on Undeveloped

question 87

Multiple Choice

Ms. Lopez paid $7,260 interest on a mortgage on undeveloped land that she holds as an investment. Ms. Lopez's AGI is $112,200, which includes $4,900 interest income from a certificate of deposit. Which of the following statements is true?

• A) Ms. Lopez can't deduct any of the $7,260 interest expense.
• B) Ms. Lopez can deduct $7,260 interest expense as an itemized deduction.
• C) Ms. Lopez can deduct $4,900 interest expense as an itemized deduction.
• D) Ms. Lopez can deduct $4,900 interest expense as an above-the-line deduction.

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Definitions:

Fetal Blood

Blood that circulates through a fetus, which has unique properties, such as a higher concentration of hemoglobin, to efficiently carry oxygen from the placenta.

Ducts

Passages or tubes in the body through which substances like air, liquid, or other materials can move from one area to another.

Milk

A nutrient-rich liquid food product produced by the mammary glands of mammals, commonly consumed by humans and used in various dairy products.

Nipples

The small protrusions on the breasts or chest that can produce milk in females and are sensitive to touch in both sexes.