This year, Randy paid $30,550 of interest on his residence. (Randy borrowed $756,000 to buy...
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This year, Randy paid $30,550 of interest on his residence. (Randy borrowed $756,000 to buy his residence, which is currently worth $840,000.) Randy also paid $3,350 of interest on his car loan and $5,475 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 $2,880 of interest this year and no other investment income or expenses. His AGI is $75,000.
This year, Randy paid $30,550 of interest on his residence. (Randy borrowed $756,000 to buy his residence, which is currently worth $840,000.) Randy also paid $3,350 of interest on his car loan and $5,475 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?
b. Randy had no investment income this year, and his AGI is $75,000.
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