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How much of the investment interest expense can be deducted

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Question - Benjamin is an active investor in stocks and bonds. During the current tax year he earned interest and dividend income totalling $18,000. He frequently borrows money to purchase his investments and this year Benjamin paid investment interest of $14,000. His only other investment expense during the year was $5,000 paid to a professional investment advisor. How much of the investment interest expense can be deducted on Benjamin's tax return this year as an itemized deduction?

a. $0

b. $9,000

c. $13,000

d. $14,000

Reference no: EM132529692

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