Final answer:
Courtney's deductible investment interest expense depends on her net investment income and relevant tax laws.
Step-by-step explanation:
The investment interest expense that Courtney is allowed to deduct this year depends on her specific situation and the relevant tax laws. To determine the deductible amount, Courtney needs to calculate her investment interest expense.
Investment interest expense is the interest paid on loans used to purchase or carry investment assets, such as stocks, bonds, or real estate. This expense is tax-deductible, but there are limitations.
Specifically, Courtney can only deduct her investment interest expense up to the amount of her net investment income for the year. Net investment income is the income she earns from her investments minus any related expenses.
To calculate the deductible amount, Courtney needs to calculate her net investment income and then compare it to her investment interest expense. If her investment interest expense is higher than her net investment income, she can only deduct up to the amount of her net investment income. If her investment interest expense is lower than her net investment income, she can deduct the full amount of her investment interest expense.