Question

Which of the characteristics below BEST describes the treatment of investment interest expense? (Check all that apply.) Multiple select question. This expense is NOT deductible. Any amount of this expense that is NOT able to be deducted in the current year cannot be carried forward. The interest deduction is limited to the taxpayer's net investment income for the year. This expense is deductible as an itemized deduction in the interest expense category. This expense is deductible as a for AGI deduction (adjustment) Any amount of this expense that is NOT deducted in the current year due to the investment income limitations may be carried forward indefinitely.

Answer 1

The interest deduction is limited to the taxpayer's net investment income for the year.

Any amount of this expense that is NOT deducted in the current year due to the investment income limitations may be carried forward indefinitely.

This expense is deductible as an itemized deduction in the interest expense category.

Step-by-step explanation:

The following are the attributed related to the investment treatment for the interest expense

a. The deduction related to the interest would be limited to the net investment income of the taxpayer

b. If any amount i.e. non-deductible so it would be carried forward for an indefinite period

c. Also if an expense is deductible so it would be classified in an interest expense and treated as an itemized deduction