Question

Doug and Sue Click file a joint tax return and decide to itemize their deductions. The Clicks' income for the year consists of $90,000 in salary, $2,000 interest income, and $800 long-term capital loss. The Clicks' expenses for the year consist of $1,500 investment interest expense. Assuming that the Clicks' marginal tax rate is 35 percent, what is the amount of their investment interest expense deduction for the year

Answer 1

Answer:

$1,500

Explanation:

Based on the information given we were told that the expenses for the year was the amount of $1,500 which represent the investment interest expense which simply means that the amount of their INVESTMENT INTEREST EXPENSE deduction for the year will be the amount of $1,500 which is INVESTMENT INTEREST EXPENSE amount.

Therefore the amount of their investment interest expense deduction for the year will be $1,500