Tony Is Married and Files a Joint Tax Return for 2012

question 97

Multiple Choice

Tony is married and files a joint tax return for 2012. He has investment interest expense of $95,000 for a loan made to him in 2012 to purchase a parcel of unimproved land. His income from investments [dividends (not qualified) and interest] totaled $18,000. Tony paid $3,600 of real estate taxes on the unimproved land. Tony also has a $4,500 net long-term capital gain from the sale of stock held as an investment. Calculate Tony's maximum investment interest deduction for 2012.

• A)$95,000.
• B)$22,500.
• C)$18,900.
• D)$18,000.
• E)None of the above.

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