Matthew borrows $300,000 to invest in bonds. During the cument year, his interest on the loan is $30,000. Matthew's taxable interest income from the bonds is $18,060. This is Matthew's only investment income and he has no other investment expenses other than the interest on the loan. a. Calculate Matthew's itemized deduction for investment interest expense for this year. x b. Is Matthew entitled to a deduction (related to the imvestment interest expense) in future vears? , the unused deduction of 5 x be carried forward as an investment interest deduction in future years. Fentow rowar wy wor Taxpayers are allowed a deduction for certain interest paid or accrued during the tax vear. Interest is defined as an amount paid for the use of borrowed funds. The type and amount of the deduction depend on the purpose for which the money is borrowed. To prevent abuses by taxpayers; the Internal Revenue Code includes a provision limaing the deduction of investment interest expense. This provision limits the amount of deductible interest on losns to finance investments