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Seems like at the end of year one DEC31 would have accounted to a year of service if they... Can you help?user-506 -
Seems like at the end of year one DEC31 would have accounted to a year of service if they granted the Stock Option on the 1st of JAN, this would mean 12,000/3 for 3 years left not 4. Equally, if that is not the case, than why would you on DEC 31 years 2 (one year later) divided the 20,000 option by 2years left. if you just used 4 years left the year before. Ether way, one seems wrong. I love to hear what I am missing or was this just an error.
I thought you can only deduct interest for investments that are taxed at ordinary income rates (not capital gain/dividend tax rates)? The question doesn't specify that the tax payer elects to have the investment income taxed at ordinary income rates, and so wouldn't the interest generated from the investments not be allowed to be included as an itemized deduction?