Question: Charles operates a sole proprietorship using the cash method. This year Charles paid $6,400 to the bank for 12 months of interest accruing on a

Charles operates a sole proprietorship using the cash method. This year Charles paid $6,400 to the bank for 12 months of interest accruing on a business loan from July 1st of this year through June 30 of next year and $6,000 for 12 months of property insurance beginning on July 1st of this year.

What is the maximum amount Charles can deduct this year?

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