ACCT 3060 Income Taxes

Tyrone and Akira incurred and paid the following amounts of interest during 2016:

Home acquisition debt interest $ 15,000 Credit card interest 5,000 Home equity loan interest 6,500 Investment interest expense 10,000

With 2016 net investment income of $2,000, calculate the amount of their allowable deduction for investment interest expense and their total deduction for allowable interest. Home acquisition principal is less than $1,000,000, and the home equity loan principal is less than $100,000.