Question
This year Randy paid $29,950 of interest on his residence. (Randy borrowed $476,000 to buy his residence, which is currently worth $526,000.) Randy also paid
This year Randy paid $29,950 of interest on his residence. (Randy borrowed $476,000 to buy his residence, which is currently worth $526,000.) Randy also paid $3,150 of interest on his car loan and $5,175 of margin interest to his stockbroker (investment interest expense). How much of this interest expense can Randy deduct as an itemized deduction under the following circumstances?
a. Randy received $2,720 of interest this year and no other investment income or expenses. His AGI is $75,000.
b. Randy had no investment income this year, and his AGI is $75,000.
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