The Crane Family Recognized the Following Types of Investment Income

question 10

Essay

The Crane family recognized the following types of investment income during 20X6: (1)$1,500 qualified dividends,(2)$3,000 long-term capital gains,and (3)$850 taxable interest.Additionally,the Crane family has $500 in investment expenses and their other miscellaneous itemized deductions exceed 2% of their AGI for the year.The Crane family paid $3,333 in investment interest expense during 20X6.Calculate the different possibilities to determine the maximum deduction for investment interest expense for the Crane family in 20X6.From these possibilities,which provides the maximum deduction?

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Definitions:

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