LO.2 In 2018, Kathleen Tweardy incurs $30,000 of interest expense related to her investments. Her investment income includes $7,500 of interest, $6,000 of quali- fied dividends, and a $12,000 net capital gain on the sale of securities. Kathleen asks you to compute the amount of her deduction for investment interest, taking into con- sideration any options she might have. In addition, she would like your suggestions about any tax planning alternatives that are available. Write a letter to her that con- tains your advice. Kathleen lives at 11934 Briarpatch Drive, Midlothian, VA 23113.