ACC 665 Grand Canyon Module 1 Discussion 2

ACC 665 Grand Canyon Module 1 Discussion 2

A taxpayer uses borrowed funds to acquire no dividend-paying corporate stock. Note that interest on borrowed funds may be deducted in the period paid, up to the amount of net investment income from other stocks or investments (that is, interest and dividend income). Discuss the tax consequences of this plan and support your response by referencing a relevant reading and/or other supplemental material