Question

Margaret Lindley paid $15,040 of interest on her $300,400 acquisition debt for her home (fair market value of $500,400), $4,040 of interest on her $30,040 home-equity loan, $1,040 of credit card interest, and $3,040 of margin interest for the purchase of stock. Assume that Margaret Lindley has $10,040 of interest income this year and no investment expenses. How much of the interest expense may she deduct this year

Answer 1

$23,160

Step-by-step explanation:

The Total interest = 15,040 + 4040 + 1040 + 3040

Total interest = $23,160

Hence, the Interest deductable this year = $23,160