Question

Required information [The following information applies to the questions displayed below.) This year, Randy paid $30,400 of interest on his residence. (Randy borrowed $482,000 to buy his residence, and it is currently worth $532,000.) Randy also paid $3,300 of interest on his car loan and $5,400 of margin interest to his stockbroker (investment interest expense). How much of this interest expense can Randy deduct as an itemized deduction under the following circumstances? a. Randy received $2,840 of interest this year and no other investment income or expenses. His AGI is $75,000. Interest deductible b. Randy had no investment income this year, and his AGI is $75,000. Interest deductible

Answer 1

Sou @ Given that Interest deduction. $30,400 4f2, Buo = $33,240 . interext deduction=$33,240 explanation - The interent on home loan is an elemized de duction. The $5,400 of margin Pinterest is investment interest which is plemized deduction but limited to net incentment Income The 2,840 of interew Income Qualities for inventment Income and he doesn't have any other parentment expensy do the investment interent experiance would be limited to 2,800 is het invertment Income. Reddy hoy no. inventment income this year and his AGO is $75,000 Interest deductible $ 30,400 explanation Reddy may deduet all. $30,4oo of " art. $30,000 of his interest on the home loan hay enterent deductable. Reddy has no het investment income Hence the investment interest would nee the deductable this year and would Carry forward to heel.year also the also the internet on the year . can loan is deductible personal interent. a