Chapter 5 HW

Problem 5-22 (Algorithmic) Interest (LO 5.8) Matthew borrows $132,500 to invest in bonds. During the current year, his interest on the loan is $13,250. Matthew's taxable interest income from the bonds is $7,950. This is Matthew's only investment income. a. Calculate Matthew's itemized deduction for investment interest expense for this year. $ b. Is Matthew entitled to a deduction (related to the investment interest expense) in future years? the unused deduction of $ be carried forward as an investment interest deduction in future years