Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur $2,750 in employment-related miscellaneous itemized deductions. They also incur $4,250 of investment interest expense during the year. The Porters’ income for the year consists of $165,000 in salary, and $3,550 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 ($2,350) long-term capital loss?