Investment Interest
Response to the following problem:
In 2012, the Edlins borrowed money to purchase stocks and taxable corporate bonds. During 2014, the Edlins paid $11,900 of interest in conjunction with this loan. Their investment income for 2014 consists of $5,000 of qualified dividend income, $2,400 of taxable interest income, and $3,300 of net capital gain. How much of the $11,900 can the Edlins deduct on their 2014 Schedule A? Be sure to discuss all options available to the Edlins.