In the current year, Sanchez paid interest of $30,000 on a $1,000,000 principal home mortgage. He also paid interest of $4,000 on a $100,000 home equity loan, the proceeds of which he used to pay off student loans. Assuming that he can itemize, what is his current year deduction from these payments? $22,500 $25,000 $30,000 $34,000
In the current year, Sanchez paid interest of $30,000 on a $1,000,000 principal home mortgage. He also paid interest of $4,000 on a $100,000 home equity loan, the proceeds of which he used to pay off student loans. Assuming that he can itemize, what is his current year deduction from these payments? $22,500 $25,000 $30,000 $34,000
Chapter6: Business Expenses
Section: Chapter Questions
Problem 69P
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Transcribed Image Text:In the current year, Sanchez paid interest of $30,000 on a $1,000,000 principal home mortgage.
He also paid interest of $4,000 on a $100,000 home equity loan, the proceeds of which he used to
pay off student loans. Assuming that he can itemize, what is his current year deduction from these
payments?
$22,500
$25,000
$30,000
$34,000
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