This year, Randy paid $30.250 of interest on his residence. (Randy borrowed $720,000 to buy his residence, which is currently worth $800,000.)

This year, Randy paid $30.250 of interest on his residence. (Randy borrowed $720,000 to buy his residence, which is currently worth $800,000.) Randy also paid $3,250 of interest on his car loan and $5,325 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 $2,800 of interest this year and no other investment income or expenses. His AGI is $75,000.

Expert Solution

Randy can deduct $ $30250 + $ 2800= $33050

The interest o vehicle loan is nondeductible personal rate of interest yet Randy might subtract all $30250 of his interest on home mortgage as a detailed reduction.

The $5325 of margin passion is likely financial investment rate of interest, and also this detailed reduction is restricted to net

Investment income. Since the $2800 of his earnings certifies as investment revenue and also Randy has nothing else investment costs, the investment passion expenditure would certainly be restricted to his $2800 in net investment revenue.

keosha answered 2 years ago

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Question

This year, Randy paid $30.250 of interest on his residence. (Randy borrowed $720,000 to buy his residence, which is currently worth $800,000.)

Solutions

Expert Solution

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