Al and Amy file a joint return for the 2007 tax year. Their adjusted gross income is

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Al and Amy file a joint return for the 2007 tax year. Their adjusted gross income is $80,000. They had net investment income of $9,000. In 2007, they had the following interest expenses:

Personal credit card interest: $4,000

Home mortgage interest: $8,000

Investment interest (on loans used to buy stocks): $10,000

What is the interest deduction for Al and Amy for the 2007 tax year?

1. $17,000

2. $8,000

3. $12,000

4. $18,000

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Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Question Posted: Apr 12, 2012 04:55 AM

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Al and Amy file a joint return for the 2007 tax year. Their adjusted gross income is

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Income Tax Fundamentals 2013

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