Explore BrainMass

Explore BrainMass

    Explain interest expense deduction on Form 1040

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Mike and Sally Card file a joint return for the 2010 tax year. Their adjusted gross income is $65,000 and they incur the following interest expenses:
    Qualified educations loans: $3,500
    Personal Loan: $1,000
    Home Mortgage Loan: $4,000
    Loan used to purchase a variety of stocks, bonds,
    and securities: $15,000

    Investment income and related expenses amount to $7,000 and $500, respectively. What is Mike and Sally's interest deduction for the 2010 tax years?

    © BrainMass Inc. brainmass.com June 4, 2020, 12:56 am ad1c9bdddf

    Solution Preview

    You can deduct investment interest (limited to your net investment income), qualified residence interest and ...

    Solution Summary

    Provides steps necessary to file a joint return.