Reference no: EM132156095

Question -

Isaiah an NBA point guard, is advised by his physician to install a Jacuzzi in his residence since he is afflicted with a back problem incurred after years of running up and down the court. The cost of installing the Jacuzzi is $6,500. He installs the Jacuzzi in January of 2017, and it increases the value of his residence by $3,500. Disregarding the limitation based on adjusted gross income, how much of the cost of the Jacuzzi may Isaiah take into account in determining his medical expense deduction for 2017?

$6,500.

$3,500.

$3,000.

$10,000.

For the year ended December 31, 2017, Terrance, a single professional, reported the following:

Net investment income from interest, $14,000

Other expenses unrelated to the generation of interest, $6,000

Investment interest expense on funds borrowed in 2016 to purchase stocks and bonds, $15,000

What is the maximum amount that Terrance can deduct in 2017 as investment interest expense?

$8,000.

$14,000.

$6,000.

$15,000.