Problem $5-23($Algorithmic$)$

Interest $($LO $5\mathrm{.}8)$

Matthew borrows $$357,500$ to invest in bonds. During the current year, his interest on the loan is $$35,750.$ Matthew's taxable interest income from the bonds is $$21,450.$ 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.

fill in the blank $1$ of $1$$

b$.$ Is Matthew entitled to a deduction $($related to the investment interest expense$)$ in future years?

fill in the blank $1$ of $3$

Yes

$,$ the unused deduction of fill in the blank $2$ of $3$$

fill in the blank $3$ of $3$

may

be carried forward as an investment interest deduction in future years