Tyrone and Akira, who are married, incurred and paid the following amounts of interest during 2020: Home acquisition debt interest Credit card interest Home equity loan interest (used for home improvement) Investment interest expense Mortgage insurance premiums (PMI) $ 14,000 4,600 6,680 11,200 1,000 Required: With 2020 net investment income of $1,400, calculate the amount of their allowable deduction for investment interest expense and their total deduction for allowable interest. Home acquisition principal, and the home equity loan principal combined are less than $750,000. Amounts Deduction for investment interest expense Total deduction for allowable interest before any phase-out limits

Tyrone and Akira, who are married, incurred and paid the following amounts of interest during 2020: Home acquisition debt interest Credit card interest Home equity loan interest (used for home improvement) Investment interest expense Mortgage insurance premiums (PMI) $ 14,000 4,600 6,680 11,200 1,000 Required: With 2020 net investment income of $1,400, calculate the amount of their allowable deduction for investment interest expense and their total deduction for allowable interest. Home acquisition principal, and the home equity loan principal combined are less than $750,000. Amounts Deduction for investment interest expense Total deduction for allowable interest before any phase-out limits

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 44P: Xinran, who is married and files a joint return, owns a grocery store. In 2019 his gross sales were...

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