Ted pays $2,100 interest on his automobile loan, $120 interest on a loan to purchase a computer for personal use, $630 interest on credit cards, and $1,100 investment interest expense. ted has net investment income of $850. ted's deductible interest is

The net Investment income is $850

Explanation:

Given that,

Ted pays $2100 interest loan for automobile

purchased a computer for personal use = $120

interest on credit cards = $630

Investment interest  expense = $1100

Ted net investment income of $850.

This is true, because the  interest expense of the investment  to the  net investment income is deducted. The others things listed are not deducted.

The net investment income can either be interest, dividends, or capital gains,  when  the interest expense is higher  than investment income, only expenses up to net investment income amount is deducted.When the expenses is lower or lesser than net investment income, the  investment interest expense is deductible.

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