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in 2017, the taxpayer borrowed 40,000 through a home equity loan. the taxpayer residence was acquired in 1986 for 150,00...

in 2017, the taxpayer borrowed 40,000 through a home equity loan. the taxpayer residence was acquired in 1986 for 150,000. in 2018, the residence was worth 215,000. the balance of the refinanced mortgage on residence was 130,000.    interest on the mortgage is 15,600. interest on home equity loan is 27,000. how much of interest from the equity loan should be deducted as mortgage interest on tax return

18300

15600

2700.

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Answer #1

The correct answer is $15,600.

Supporting explanations:

The interest of $27,000 on home equity loan is not allowed as deduction on the tax return because it is used for home purpose but only the interest of $15,600 on mortgage interest is allowed as deductible on the tax return.

Therefore, the correct answer is $15,600.

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