Charles Wolfe purchased the following long-term investments at par during 2007:
$20,000 general obligation bonds of Burlington County (wholly tax-exempt)
$10,000 debentures of Arrow Corporation
Wolfe financed these purchases by obtaining a $30,000 loan from the Union National Bank. For the year 2007, Wolfe made the following interest payments:
|
Union National Bank |
$3,600 |
|
Interest on home mortgage |
3,000 |
|
Interest on credit card charges (items purchased for personal use) |
500 |
What amount can Wolfe utilize as interest expense in calculating itemized deductions for 2007?
- $3,000
- $4,200
- $5,400
- $7,100