Mickey and Jenny

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
Publisher:WHITTENBURG
Chapter6: Accounting Periods And Other Taxes
Section: Chapter Questions
Problem 12P: Otto and Monica are married taxpayers who file a joint tax return. For the current tax year, they...
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Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur $2,900 in investment expenses. They also incur $4,500 of investment interest expense during the year. The Porters' income for the year consists of $168,000 in salary and $3,760 of interest income.

a. What is the amount of the Porters' investment interest expense deduction for the year?

 b. What would their investment interest expense deduction be if they also had a ($2,420) long-term capital loss?

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