Margaret Lindley paid $15,010 of interest on her $300,100 acquisition debt for her home (fair market...

   

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Margaret Lindley paid $15,010 of interest on her $300,100 acquisition debt for her home (fair market value of $500,100), $1,010 of credit card interest, and $3,010 of margin interest for the purchase of stock. Assume that Margaret Lindley has $10,010 of interest income this year and no investment expenses. How much of the interest expense may she deduct this year? Margaret Lindley paid $15,010 of interest on her $300,100 acquisition debt for her home (fair market value of $500,100), $1,010 of credit card interest, and $3,010 of margin interest for the purchase of stock. Assume that Margaret Lindley has $10,010 of interest income this year and no investment expenses. How much of the interest expense may she deduct this year?

Answer rating: 100% (QA)

To determine the deductible interest expense for Margaret Lindley we need to consider the different ... View the full answer