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

Exercise 65

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.