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3 years ago

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

Business

1 answer:

cricket20 [7]3 years ago

7 0

Answer:

The amount of interest which can be deducted in one year is limited to the net investment income of a taxpayer for that year.

Explanation:

This amount can not be exceeded. Investment income according to the IRS includes:... It does not include eligible dividends or net capital gains other than those that you want to include.

Limitations on investment interest Not all interest that you pay on investment loans are allowed to be deducted. For particular, the IRS forbids registration of certain forms of investment value, including:

1. Home mortgage interest eligible.

2. Value to raise tax-exempt revenue, as if the municipal tax-free bond is to be bought on a margin.

3. Option straddles, which are not available to most investors as an advanced investment strategy.

4.Interest in any passive operation when measuring profit or loss

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Boersma Sales , Inc., a merchandising company, reported sales of 7100 units in September at a selling price of $682 per unit. Co

Doss [256]

Answer:

$2,122,900

Explanation:

Calculation to determine what The Gross margin for September was

First step is to determine the variable costs

Variable costs= (317 * 7,100) + (44*7,100) + (22*7,100)

Variable costs= 2,250,700 + 312,400 + 156,200

Variable costs= $2,719,300

Now let determine the Gross margin

Using this formula

GM=Sales-VC

Let plug in the formula

Gross margin = (682 * 7,100) - 2,719,300

Gross margin = $2,122,900

Therefore The gross margin for September was:$2,122,900

3 0

3 years ago

Suppose that the CPI does indeed overstate the rate of inflation. When the CPI increases by 5%

adoni [48]

Answer:

A) increased.

Explanation:

If the CPI overstates the inflation rate, it means that the CPI is higher than the inflation rate. If the CPI = 5%, then the inflation rate must be lower than 5%. If the household incomes increased by 5%, then the real income (nominal income discounted by inflation rate) should have increased.

For example, the inflation rate is lower than 5%, so lets say it is 4%. Then the real income increased by: 5% / 4% = 1.25% - 1% = 0.25%

4 0

3 years ago

Is the amount a business earns after deducting what it spends for salaries and other expenses.

krok68 [10]

Answer:

After deducting the expenses for salaries and other expenses like rent, the money you have left is the amount of money that you actually earned.

4 0

3 years ago

If a patent lawyer works for a startup without cash compensation, but receives instead shares in the presumably soon-to-be-succe

olga_2 [115]

1 or 2 mmight be the right answers but please let me know if im wrong

5 0

3 years ago

Read 2 more answers

In its first month of operations, Splish Brothers Inc. made three purchases of merchandise in the following sequence: (1) 155 un

FrozenT [24]

Answer:

FIFO= $2,580

LIFO= $2,325

Explanation:

Giving the following information:

(1) 155 units at $7

(2) 410 units at $8

(3) 100 units at $9.

Assuming there are 310 units on hand.

FIFO (first-in, first-out) method:

Ending inventory= last units purchased

Inventory= 100*9 + 210*8= $2,580

LIFO (last-in, first-out)

Inventory= first units purchased

Inventory= 7*155 + 8*155= $2,325

8 0

4 years ago