For 2011, Jorge, a single father, reported the following amounts relating to his investments:

Net investment income from interest $7000

interest expense on a loan to purchase stock 2000

interest expense on funds borrowed in 2010 to purchase land for investment 6000

What is the maximum amount that Jorge can deduct in 2011 as investment interest expense?
A. $1,000
B. $2,000
C. $6,000
D. $7,000

is it D

To determine the maximum amount that Jorge can deduct in 2011 as investment interest expense, you will need to know the relevant tax laws and rules relating to investment interest deductions.

According to the U.S. Internal Revenue Service (IRS), the maximum amount of investment interest expense that an individual can deduct is generally limited to the amount of their net investment income. Net investment income is the excess of a person's investment income over investment expenses.

In Jorge's case, he reported a net investment income of $7,000 from interest. However, he also reported interest expenses on a loan to purchase stock ($2,000) and interest expenses on funds borrowed in 2010 to purchase land for investment ($6,000).

To calculate the maximum amount of investment interest expense that Jorge can deduct, you subtract his investment expenses from his net investment income:

Net investment income - Investment expenses = Maximum investment interest expense deduction

$7,000 - ($2,000 + $6,000) = $7,000 - $8,000 = -$1,000

Since the result is negative, it means that Jorge's investment expenses exceed his net investment income. In this case, he can only deduct the amount of his net investment income as investment interest expense. Therefore, the correct answer would be:

A. $1,000

So, no, the correct answer is not D.