Question

During the current year, Martin purchases undeveloped land as an investment. Martin intends to rent the land as pastureland and hopefully sell it later for a profit. In the current year, Martin receives no rent but he does pay taxes of $2,800, mortgage interest of $900 and liability insurance of $500. How much of these expenses can Martin deduct (before any limitations) on his current tax return?A) $0B) $1,400C) $3,700D) $4,200

Answer 1

Answer:

D) $4,200

Explanation:

Martin's expenses on land = taxes of $2,800 + mortgage interest of $900 a+ liability insurance of $500 = $4,200