A taxpayer has a mortgage with a total value of $1,200,000 and a home equity loan of $150,000, both obtained in 2015. The total interest paid during the year was $48,000 for the mortgage and $7,500 for the home equity loan. The home equity loan was used to renovate the kitchen. What amount of these interest totals can be deducted in TY2023?
A taxpayer has a mortgage with a total value of $1,200,000 and a home equity loan of $150,000, both obtained in 2015. The total interest paid during the year was $48,000 for the mortgage and $7,500 for the home equity loan. The home equity loan was used to renovate the kitchen. What amount of these interest totals can be deducted in TY2023?
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 21CE
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Transcribed Image Text:A taxpayer has a mortgage with a total value of $1,200,000 and a
home equity loan of $150,000, both obtained in 2015. The total
interest paid during the year was $48,000 for the mortgage and
$7,500 for the home equity loan. The home equity loan was used to
renovate the kitchen. What amount of these interest totals can be
deducted in TY2023?
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