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How much interst expense can A deduct in the current year

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Question - A buys a house for $2,000,000 and borrows $1,000,000 towards its purchase. A incurs 35,000 of interest expense. How much interest expense can A deduct? A also has a brokerage account and borrows $50,000 to purchase securities. A incurs 3,500 of interest expense on the $50,000 of debt. A has 1,500 of interest income and $3,000 of long-term capital gains. How much interst expense can A deduct in the current year on the $50,000 debt?

Reference no: EM132523127

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