Margaret Lindley paid $15,000 of interest on her $300,000 acquisition debt for her home (fair market value of $500,000), $4,000 of interest on her $30,000 home-equity loan, $1,000 of credit card interest, and $3,000 of margin interest for the purchase of stock. Assume that Margaret Lindley has $10,000 of interest income this year and no investment expenses. How much of the interest expense may she deduct this year?

A). $23,000.
B). $22,000.
C). $19,000.
D). $18,000.
E). None of these

Answer rating: 100% (QA)

Total deductible interest 150... View the full answer