Itemized deduction for investment interest expense


Matthew borrows $250,000 to invest in bonds. During 2013, his interest on the loan is $30,000. Matthew's interest income from the bonds is $10,000. This is Matthew's only investment income.

a) Calculate Matthew's itemized deduction for investment interest expense for this year. ______________________

b) Is Matthew entitled to a deduction in future years? ______________

Explain ________________________________________

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Accounting Basics: Itemized deduction for investment interest expense
Reference No:- TGS0513502

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