Question: This year Randy paid $ 2 8 , 4 5 0 of interest on his residence. ( Randy borrowed $ 4 5 6 , 0

This year Randy paid $28,450 of interest on his residence. (Randy borrowed $456,000 to buy
his residence, which is currently worth $506,000.) Randy also paid $2,650 of interest on his car
loan and $4,425 of margin interest to his stockbroker (investment interest expense). How much
of this interest expense can Randy deduct as an itemized deduction under the following
circumstances?
b. Randy had no investment income this year, and his AGI is $75,000.
This year Randy paid $28,450 of interest on his residence. (Randy

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