In the current year, Dylan earned interest from the following investments. Investment nterest Income 10-year municipal bond (issued in 2009) $1,300 10-year private activity bond (issued in 2010) 1,600 10-year Treasury bond (issued in 2015) 2,000 10-year private activity bond (issued in 2021) 900 Savings account 1,100 Dylan purchased all of the bonds on their issuance date. In addition, Dylan borrowed funds with which to purchase the 2010 private activity bond and incurred interest expense of $350 on that loan in the current year. a. How much interest income will Dylan recognize for regular tax purposes in the current year? b. What is her current year AMT preference or adjustment for interest?

In the current year, Dylan earned interest from the following investments. Investment nterest Income 10-year municipal bond (issued in 2009) $1,300 10-year private activity bond (issued in 2010) 1,600 10-year Treasury bond (issued in 2015) 2,000 10-year private activity bond (issued in 2021) 900 Savings account 1,100 Dylan purchased all of the bonds on their issuance date. In addition, Dylan borrowed funds with which to purchase the 2010 private activity bond and incurred interest expense of $350 on that loan in the current year. a. How much interest income will Dylan recognize for regular tax purposes in the current year? b. What is her current year AMT preference or adjustment for interest?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter5: Business Deductions

Section: Chapter Questions

Problem 24P

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