In 2017, Kathleen Tweardy incurs $30,000 of interest expense related to her investments. Her investment income includes $7,500 of interest, $6,000 of qualified dividends, and a $12,000 net capital gain on the sale of securities. Kathleen asks you to compute the amount of her deduction for investment interest, taking into consideration any options she might have. In addition, she wants your suggestions as to any tax planning alternatives that are available. Write a letter to her that contains your advice. Kathleen lives at 11934 Briarpatch Drive, Midlothian, VA 23113.

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter11: Investor Losses
Section: Chapter Questions
Problem 63P
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In 2017, Kathleen Tweardy incurs $30,000 of interest
expense related to her investments. Her investment
income includes $7,500 of interest, $6,000 of qualified
dividends, and a $12,000 net capital gain on the sale of
securities. Kathleen asks you to compute the amount of
her deduction for investment interest, taking into
consideration any options she might have. In addition,
she wants your suggestions as to any tax planning
alternatives that are available. Write a letter to her that
contains your advice. Kathleen lives at 11934 Briarpatch
Drive, Midlothian, VA 23113.
Transcribed Image Text:In 2017, Kathleen Tweardy incurs $30,000 of interest expense related to her investments. Her investment income includes $7,500 of interest, $6,000 of qualified dividends, and a $12,000 net capital gain on the sale of securities. Kathleen asks you to compute the amount of her deduction for investment interest, taking into consideration any options she might have. In addition, she wants your suggestions as to any tax planning alternatives that are available. Write a letter to her that contains your advice. Kathleen lives at 11934 Briarpatch Drive, Midlothian, VA 23113.
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