Edward is single with income that places him in the 35 percent marginal tax bracket for ordinary income and 15 percent for long-term capital gains. He incurs interest expense of $10,000 attributable to his investment in stocks and bonds. His gross investment income is $6,200 ($1,000 of which is from long-term capital gains and dividends) in 2019. He also has $20,000 of deductible home mortgage interest expense.

1. What are Edwards options in determining his itemized deduction for investment interest expense? Explain.
2. What happens if he cannot deduct all $10,000 of the investment interest expense in the current year?