This year Diane paid $20,000 of interest on a mortgage on his home (Diane borrowed $600,000...

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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?

business accounting

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Answer 1

Answer #1

Interest expense that will be allowed to deduct will be $ 20000 only.

$ 2500 will not be allowed since it is done for buying boat which is not related to home and rather it is personal nature expenses.

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Answer 2

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