This year, Hermine paid $13,000 of investment interest expen…

This year, Hermine paid $13,000 of investment interest expense. She also earned $4,500 in qualified dividends, $5,400 in interest income, and had a short-term capital gain (STCG) of $1,000 and a long-term capital gain (LTCG) of $2,200. The capital gains resulted from the sale of stock held as investments. She has no other investment expenses.   Assuming Hermine does make an election to have her LTCG and qualified dividends taxed at ordinary tax rates, how much investment interest expense may she deduct?

Danielle paid $11,000 of interest on a $400,000 mortgage on…

Danielle paid $11,000 of interest on a $400,000 mortgage on her home, $1,000 of interest on a $30,000 loan obtained to purchase a car for personal use, and $2,000 of interest on a personal credit card. How much of the interest expense may she deduct as an itemized deduction?