Carrying charges and interest expense are an allowable deduction if they were used to earn investment income.

Question

Quizplus · Accepted Answer

Carrying charges and interest expense are deductible if they were incurred to earn investment income, such as dividends, interest, or capital gains from investments. However, if the borrowing was used for personal or non-investment purposes, such as buying a home or financing a vacation, the interest expense is not deductible.

Carrying Charges and Interest Expense Are an Allowable Deduction If