Question

Margaret Lindley paid $15,100 of interest on her $301,000 acquisition debt for her home (fair market value of $501,000), $1,100 of credit card interest, and $3,100 of margin interest for the purchase of stock. Assume that Margaret Lindley has $10,100 of interest income this year and no investment expenses. How much of the interest expense may she deduct this year?

Answer 1

Answer:

The interest expense may she deduct this year is $18200.

Explanation:

interest expense deducted this year = interest on home load + marginal interest for the purchase of stock

                                                            = $15,100 + $3,100

                                                            = $18200

Therefotr, the interest expense may she deduct this year is $18200.