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Brandon and Jane Forte file a joint tax return and decide to itemize their deductions. The Fortes' income for the year consists of $119,500 in
Brandon and Jane Forte file a joint tax return and decide to itemize their deductions. The Fortes' income for the year consists of $119,500 in salary, $750 interest income, $1,250 nonqualifying dividends, and $750 long-term capital gains. The Fortes' expenses for the year consist of $2,750 in investment interest expense and $850 in tax preparation fees. Assuming that the Fortes' marginal tax rate is 32 percent and they make no special elections, what is the amount of investment interest expense deduction for the year?
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