19.This year, Diane paid $20,000 of interest on a mortgage on his home (Diane borrowed $600,000...
19.This year, Diane paid $20,000 of interest on a mortgage on his home (Diane borrowed $600,000 to buy the residence and it is currently worth $900,000), and $2,500 on a $90,000 home equity loan on his home to purchase a boat. How much interest expense can Diane deduct as an itemized deduction?
Homework Answers
Deductions on mortgage loan taken by borrowers in order to purchase residence home is allowed itemised which is should greater than the standard deduction, and based on the principle amount of loan taken by an individual who is not yet married is stated below as per IRA,
#He is only eligible when his principle amount less than or equal to $750,000 for 2019, which limit reduced from $1 million last year.
#technically home equity loan eliminated since 2018, but if it is taken for further improving such home then it is eligible for deduction including with principles limit of same loan$750,000.
In the given situation Diane is eligible for only to the extent of$20000 , but not for 2500$as purchasing boat not treated as further improvement for home hence he is not eligible for deduction of such interest payment.
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19.This year, Diane paid $20,000 of interest on a mortgage on
his home (Diane borrowed $600,000...
This year Diane paid $20,000 of interest on a mortgage on his home (Diane borrowed $600,000...
This year Diane paid $20,000 of interest on a mortgage on his home (Diane borrowed $600,000 to buy the residence and it is currently worth $900,000), and $2,500 on a $90,000 home equity loan on his home to purchase a boat. How much interest expense can Diane deduct as an itemized deduction?
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