Questions -
Q1. Isaiah an NBA point guard, is advised by his physician to install a Jacuzzi in his residence since he is afflicted with a back problem incurred after years of running up and down the court. The cost of installing the Jacuzzi is $6,500. He installs the Jacuzzi in January of 2017, and it increases the value of his residence by $3,500. Disregarding the limitation based on adjusted gross income, how much of the cost of the Jacuzzi may Isaiah take into account in determining his medical expense deduction for 2017?
$6,500.
$3,500.
$3,000.
$10,000.
Q2. For the year ended December 31, 2017, Terrance, a single professional, reported the following:
Net investment income from interest, $14,000
Other expenses unrelated to the generation of interest, $6,000
Investment interest expense on funds borrowed in 2016 to purchase stocks and bonds, $15,000
What is the maximum amount that Terrance can deduct in 2017 as investment interest expense?
$8,000.
$14,000.
$6,000.
$15,000.