A taxpayer has a mortgage with a total value of $1,500,000 and a home equity loan of $250,000 that were finalized in TY2018. The total interest paid during the year was $54,000 for the mortgage and $9,000 for the home equity loan. What amount of these interest totals can be deducted? 1. Half the mortgage ($750k indebtedness limit) and 40% of the equity loan ($100k indebtedness limit) for a total of $36,000 2. The full value of $63,000 3. Half the mortgage ($750k indebtedness limt) and none of the home equity loan for a total of $27,000 4. Two-thirds of the mortgage value (S1m indebtedness limit) and 40% of the home equity loan ($100k indebtedness limit) for a total of $39,600
A taxpayer has a mortgage with a total value of $1,500,000 and a home equity loan of $250,000 that were finalized in TY2018. The total interest paid during the year was $54,000 for the mortgage and $9,000 for the home equity loan. What amount of these interest totals can be deducted? 1. Half the mortgage ($750k indebtedness limit) and 40% of the equity loan ($100k indebtedness limit) for a total of $36,000 2. The full value of $63,000 3. Half the mortgage ($750k indebtedness limt) and none of the home equity loan for a total of $27,000 4. Two-thirds of the mortgage value (S1m indebtedness limit) and 40% of the home equity loan ($100k indebtedness limit) for a total of $39,600
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 19DQ
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