During the year, Tobias reports $90,000 of active business i…

During the year, Tobias reports $90,000 of active business income from his law practice. He also owns two passive activities (neither are rental real estate). From Activity A, he earns $20,000 of income, and from Activity B, he incurs a ($30,000) loss. As a result, Tobias reports

Karen suffered a serious, physical illness from eating conta…

Karen suffered a serious, physical illness from eating contaminated food at a restaurant. As a result, she sued the restaurant and recovered the following amounts:   Medical bills$6,000Emotional distress associated with the physical illness$3,000Punitive damages$44,000   What amounts, if any, must Karen include in her gross income?

This year, Hermine paid $13,000 of investment interest expen…

This year, Hermine paid $13,000 of investment interest expense. She also earned $4,500 in qualified dividends, $5,400 in interest income, and had a short-term capital gain (STCG) of $1,000 and a long-term capital gain (LTCG) of $2,200. The capital gains resulted from the sale of stock held as investments. She has no other investment expenses.   Assuming Hermine does make an election to have her LTCG and qualified dividends taxed at ordinary tax rates, how much investment interest expense may she deduct?