For 2018, Thomas, a single parent, reported the following amounts relating to his investments:
Net investment income $ 7,000
Interest expense on a loan to purchase stocks 2,000
Interest expense on funds borrowed to purchase land for investment 6,000
What is the treatment for the interest expense that Thomas could not deduct in 2018?
a. It is lost.
b. It cannot be used except as a carryback to previous years.
c. It can be carried forward and deducted in succeeding years.
d. None of the choices are correct.
