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Compute how much is the allowable interest expense

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Question - A resident citizen has the following data regarding his interest expense and interest income:

Interest income from short-term bank deposits, net of final tax - 90,000

Interest income from personal loans - 60,000

Interest expense from bank loans to fund the business - 120,000

Interest expense from personal loans - 30,000

Required - Compute how much is the allowable interest expense deduction to gross income.

Reference no: EM133186768

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