a.Determine Helen’s investment interest deduction for the current year. b.Discuss the treatment of the portion of Helen’s investment interest that is disallowed for the current year. c.Complete Helen’s Form 4952 for the current year. For this purpose, assume that she chooses not to include the long-term capital gain as investment income. Her Social Security number is 123-45-6789.
64.LO.10 Helen Derby borrowed $150,000 to acquire a parcel of land to be held for investment purposes. During the current year, she reported AGI of $90,000 and paid interest of $12,000 on the loan. Other items related to Helen’s investments include the following:
Interest and annuity income$11,000
Long-term
Real estate tax on the investment land800
a.Determine Helen’s investment interest deduction for the current year.
b.Discuss the treatment of the portion of Helen’s investment interest that is disallowed for the current year.
c.Complete Helen’s Form 4952 for the current year.
For this purpose, assume that she chooses not to include the long-term capital gain as investment income. Her Social Security number is 123-45-6789.
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