Determine helen''s investment interest deduction

Reference no: EM13210739

Helen borrowed $200,000 to acquire a parcel of land to be held for investment purpose. During 2010, she paid interest of $20,000 on the loan. She had AGI of $100,000 for the year. Other items related to Helen's investments include the following:
Investment income $14,100
Long-term capital gain on sale of stock $5,500
Investment counsel fees $3,000
Helen is unmarried and elects to itemize her deductions. She has no miscellaneous itemized deduction other than the investment fees.

a. Determine Helen's investment interest deduction for 2010.
b. Discuss the treatment of the portion of Helen's investment interest that is disallowed in 2010.

Reference no: EM13210739

Questions Cloud

Mob violence against abolitionists-the mayflower compact : The immediate cause for the Texan Americans' declaration of independence on March 2, 1836 was that... The First Continental Congress... Mob violence against abolitionists...The Mayflower Compact...

Should the reduced tax rate on dividends : Discuss the topic- Should the reduced tax rate on dividends affect a multinational firm's capital structure

Explain how many moles of each substance is present : Determine which substances will be present in the container after the reaction goes to completion and how many moles of each substance is present.

Explain the internal energy of the gas : What would the internal energy of the gas be if it were compressed to .10 m^3 while the pressure was held constant?

Determine helen''s investment interest deduction : Helen borrowed $200,000 to acquire a parcel of land to be held for investment purpose. During 2010, she paid interest of $20,000 on the loan. She had AGI of $100,000 for the year

Should investors care about a multinational firm : Should investors care about a multinational firm's accounting exposure - Accounting exposure is any exposure of a multinational firm's consolidated financial statements to exchange rate movements.

Explain how many molecules of air does it contain : contains air at a pressure of 171 kPa and a temperature of 293 K. How many moles of air are in it? Also, how many molecules of air does it contain?

Find out the rms speed of nitrogen and oxygen : Air is mostly nitrogen and oxygen. Determine the rms speed of nitrogen and oxygen at room temperature (20° C).

Created several unanticipated problems-maternity care : This would mean that a patient, who may need cardiac or maternity care, may need to drive 50 miles and pass 4 or 5 good hospitals in the plan in order to get the care they needed at Verde Greene Hospital.

User Account

All Pages