Raul Is Married and Files a Joint Tax Return

question 47

Multiple Choice

Raul is married and files a joint tax return. His current investment interest expense of $95,000 is related to a loan used to purchase a parcel of unimproved land. Income from investments [dividends (not qualified) and interest] total $18,000. Raul paid $5,000 of real estate taxes on the unimproved land. He also has a $4,500 net long-term capital gain from the sale of another parcel of unimproved land. Raul's maximum investment interest deduction for the year is:

• A)$95,000.
• B)$18,000.
• C)$17,500.
• D)$13,000.
• E)None of the above.

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Definitions:

Conscientiousness

A personality trait characterized by diligence, carefulness, thoroughness, and the desire to do a task well.

Agreeableness

A personality trait characterized by warmth, kindness, and a cooperative nature.

Compassionate

Showing sympathy and concern for the sufferings or misfortunes of others, often motivating a desire to help.

Unpleasant Emotions

Feelings that are distressing or causing discomfort, such as sadness, anger, or fear.