tax#4 - Taxation 305 Assignment 4 1 If an investor with suspended losses in a passive interest dies then any losses that exceed the fair market value of

tax#4 - Taxation 305 Assignment 4 1 If an investor with...

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Taxation 305 Assignment 4 1. If an investor with suspended losses in a passive interest dies, then any losses that exceed the fair market value of the property minus the tax basis of the property is deductible on the decedent's final return. 2. Investment interest expense is the amount of interest on the amount borrowed by the person for the purpose of investing the amount in property. Limitation on investment interest (1) In general In the case of a taxpayer other than a corporation, the amount allowed as a deduction under this chapter for investment interest for any taxable year shall not exceed the net investment income of the taxpayer for the taxable year. (2) Carry forward of disallowed interest The amount not allowed as a deduction for any taxable year by reason of paragraph (1) shall be treated as investment interest paid or accrued by the taxpayer in the succeeding taxable year. (3) Investment interest (A) In general
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