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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Definitions:

Linguistic Determinism

The hypothesis that the structure of a language affects its speakers' world view or cognition, and thus people's perceptions are relative to their spoken language.

Words

Basic units of communication in language, consisting of one or more phonemes and bearing a specific meaning.

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The process of considering or reasoning about something, involving cognitive processes to solve problems or make decisions.

Vocabulary Emotions

The set of emotions that can be described and identified through specific words in a given language.