a.  Calculate Matthew's itemized deduction for investment interest expense for this year. b.  Is Matthew entitled to a deduction (related to the investment interest expense) in future years? Yes , the unused deduction of  _______  may  be carried forward as an investment interest deduction in future years

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 25DQ
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Matthew borrows $265,000 to invest in bonds. During the current year, his interest on the loan is $26,500. Matthew's taxable interest income from the bonds is $15,900. 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.

b.  Is Matthew entitled to a deduction (related to the investment interest expense) in future years?
Yes , the unused deduction of  _______  may  be carried forward as an investment interest deduction in future years

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