Brock incurs $950 interest on his GMAC auto loan, $150 interest on a loan with Computer Express to buy a multi-media equipped computer (personal use), $500 interest on his credit cards, and $1,000 investment interest. Brock's net investment income is $650. Brock's deductible interest amount is

Question

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Investment interest expense is deductible to the extent of net investment income. Brock's net investment income is $650, which means he can deduct $650 of his $1,000 investment interest. The interest on the auto loan, computer loan, and credit cards is considered personal interest and is not deductible.

Brock Incurs $950 Interest on His GMAC Auto Loan, $150