Question
Edward is single with income that places him in the 25 percent marginal tax bracket. He incurs interest expense of $10,000 attributable to his investment
Edward is single with income that places him in the 25 percent marginal tax bracket. 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), and his adjusted gross income, including his investment income, is $68,000. Edward paid a $100 brokerage account maintenance fee and $300 to a certified financial planner for advice. He has $1,200 of other qualifying miscellaneous itemized deductions.
- How much can Edward deduct for miscellaneous itemized deductions?
- What are Edwards options in determining his deduction for investment interest expense?
- What happens if he cannot deduct all of the investment interest expense in the current year?
Please type the answer
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