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Thomas and Gianna Donovan file a joint tax return and decide to itemize their deductions. The Donovan's income for the year consists of $120,000 in
Thomas and Gianna Donovan file a joint tax return and decide to itemize their deductions. The Donovan's income for the year consists of $120,000 in salary, $1,000 interest income, $1,500 non-qualifying dividends, and $1,100 long-term capital gains. The Donovan's expenses for the year consist of $3,000 investment interest expense and $900 tax preparation fees. Assuming that the Donovan's marginal tax rate is 30% and they make no special elections, what is the amount of investment interest expense deduction for the year?
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