Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur $3,350 in investment expenses. They also incur $5,250 of investment interest expense during the year. The Porters income for the year consists of $177,000 in salary and $4,390 of interest income.

a. What is the amount of the Porters investment interest expense deduction for the year?

Investment Interest Expense Deduction

$4,390

b. What would their investment interest expense deduction be if they also had a ($2,630) long-term capital loss?

Investment Interest Expense Deduction