# Matthew borrows \$250,000 to invest in bonds. During 2013

Matthew borrows \$250,000 to invest in bonds. During 2013, his interest on the loan is \$30,000. Matthew’s interest income from the bonds is \$10,000. This is Matthew’s only investment income.a) calculate Matthew’s itemized deduction for investment interest expense for this year. ______________________b) Is Matthew entitled to a deduction in future years? ______________Explain ________________________________________I’m thinking this goes on form 1040 schedule A?

# Matthew borrows \$250,000 to invest in bonds. During 2013

Matthew borrows \$250,000 to invest in bonds. During 2013, his interest on the loan is \$30,000. Matthew’s interest income from the bonds is \$10,000. This is Matthew’s only investment income.a) calculate Matthew’s itemized deduction for investment interest expense for this year. ______________________b) Is Matthew entitled to a deduction in future years? ______________Explain ________________________________________I’m thinking this goes on form 1040 schedule A?