Dorothie paid the following amounts during 2010: Interest on her home mortgage $9,250 Service charges on her

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Dorothie paid the following amounts during 2010:

Interest on her home mortgage $9,250 Service charges on her checking account 48 Visa and Mastercard interest 168 Automobile loan interest 675 Interest on a loan to buy stock 1,600 Credit investigation fee for a loan 75 Dorothie’s residence has a fair market value of $150,000. The mortgage balance is $125,000, which is a loan that was acquired in 1998 when she purchased her home. No additional debt was incurred as a result of the refinancing of the home mortgage. Dorothie has $1,000 of net investment income.

Use the following interest section of Schedule A to calculate Dorothie’s interest deduction for the current year.

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Income Tax Fundamentals 2011

ISBN: 9780538469197

29th Edition

Authors: Gerald E. Whittenburg, Martha Altus-Buller

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