Final answer:
The annual limit on the deductibility of investment interest expense depends on the individual's net investment income, not a fixed amount like $102 million.
Step-by-step explanation:
The annual limitation placed on the deductibility of investment interest expense is determined by the amount of net investment income you have. Investment interest expense is the interest paid on money borrowed to purchase taxable investments. According to the IRS, the deduction for investment interest expense is limited to your net investment income. That is, the interest expense incurred to generate taxable income can only be deducted up to the amount of the income generated from those investments. Any disallowed interest expense can be carried forward to be deducted in future tax years.
The specific amount of the limitation will vary based on each taxpayer's individual financial situation, including total investment income and expenses. There are no generic figures such as $102 million that apply across the board to all taxpayers regarding the limitation on investment interest expense. It is important to consult tax regulations or a tax advisor for personal tax situations.