McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 37

This year Randy paid $28,000 of interest (Randy borrowed $450,000 to buy his residence, and it is currently worth $500,000).Randy also paid $2,500 of interest on his car loan and $4,200 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 $2,200 of interest this year and no other investment income or expenses.b.Randy had no investment income this year.