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Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur $2,300 in investment expenses. They also incur $3,500 of
Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur $2,300 in investment expenses. They also incur $3,500 of investment interest expense during the year. The Porters' income for the year consists of $156,000 in salary and $2,920 of interest income.
Problem 7-56 Part-a (Algo)
a. What is the amount of the Porters' investment interest expense deduction for the year?
b. What would their investment interest expense deduction be if they also had a ($2,140) long-term capital loss?
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