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11-32 Interest Expense Limitations. Indicate in each of the following cases the amount o interest expense, if any, that the taxpayer is allowed to deduct. During the year, H used his bank credit card to purchase a new tablet com for his teenage daughter. Finance charges for the year were $70 Over the years, G has consistently borrowed against her insurance policies cause of their low rates. This year, she paid interest of $1,100 on the loans D has three residences. His principal residence is in Newark, New Jersey. On the Newark home, he has a mortgage of $300,000 on which he paid interest of $18,000 for the year. He also owns a summer home in Martha's Vineyard a beautiful island off the southern coast of Massachusetts. He has a $200,000 mortgage on his summer home and this year paid $10,000 of interest. His third residence is a condominium in Aspen, Colorado on which he has a $120,000 mortgage. This year he paid $8,000 of interest expense on the condominium's mortgage. All three properties had been purchased prior to December 1,2017 B owns a home in Denver that she purchased in 2006 for $95,000. The current balance on B's mortgage loan is $60,000 and the property is worth $150,000 During the year, B obtained a second mortgage on her home, receiving $20,000 which she used to pay off her two outstanding car loans. Interest on the first mortgage was $4,000 while interest on the second mortgage was $1,000 M is a heavy trader of stocks and bonds, using his margin account frequently This year, interest expense charged on his margin purchases was $5,200. M's in vestment income was $2,400 R is an employee of a television repair shop. He uses his own truck solely for business, making customer service calls. During the year, he paid $1,450 inter- est on a loan on his truck a. b. c. d. e. f

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