How much can edward deduct for miscellaneous

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Question - Edward is single with income that places him in the 25 percent marginal tax bracket. He incurs interest expense of $10,000 attributable to his investment in stocks and bonds. His gross investment income is $6,200 ($1,000 of which is from long-term capital gains and dividends), and his adjusted gross income, including his investment income, is $68,000. Edward paid a $100 brokerage account maintenance fee and $300 to a certified financial planner for advice. He has $1,200 of other qualifying miscellaneous itemized deductions.

How much can Edward deduct for miscellaneous itemized deductions?

What are Edward's options in determining his deduction for investment interest expense?

What happens if he cannot deduct all of the investment interest expense in the current year?

Reference no: EM132188575

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