Ramon Incurred $83,100 of Interest Expense Related to His Investments

question 117

Multiple Choice

Ramon incurred $83,100 of interest expense related to his investments this year. His investment income included $34,500 of interest and a $37,500 net capital gain on the sale of securities. Ramon has asked you to compute the amount of his deduction for investment interest, taking into consideration any options he might have. What is the maximum amount of Ramon's investment interest expense deduction in the current year?

• A) $19,500.
• B) $34,500.
• C) $72,000.
• D) $83,100.
• E) None of the above.