For investment interest expense in 2015, the deduction by a taxpayer is:
A) Limited to the investment interest expense paid in 2015.
B) Limited to the taxpayer's net investment income for 2015.
C) Not limited.
D)Limited to the taxpayer's gross investment income for 2015.

Question

Quizplus · Accepted Answer

The deduction for investment interest expense is limited to the taxpayer's net investment income for the year. Any excess investment interest expense can be carried forward to future years. This limitation ensures that taxpayers cannot use investment interest expense to create a tax loss.

For Investment Interest Expense in 2015, the Deduction by a Taxpayer