All 3 loans were taken out in 2019. How much interest may Ally claim as an itemized deduction in 2020? a. $ 28,500 b. $ 28,000 c. $ 27,000 d. $ 26,500 e. $ 16,000
All 3 loans were taken out in 2019. How much interest may Ally claim as an itemized deduction in 2020? a. $ 28,500 b. $ 28,000 c. $ 27,000 d. $ 26,500 e. $ 16,000
Chapter3: Income Sources
Section: Chapter Questions
Problem 58P
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Question
In 2020, Ally paid $ 35,250 in personal interest during 2020 as follows:
• $ 16,000 – Loan of $ 400,000 secured by personal residence to purchase the house.
• $ 18,000 – Loan of $ 600,000 secured by principal residence. $ 400,000 was used to substantially improve the house and $ 200,000 was used for personal purposes.
• $ 1,250 – Personal automobile loan interest. Gabby uses her auto 40% for business travel required by her employer.
All 3 loans were taken out in 2019. How much interest may Ally claim as an itemized deduction in 2020?
a. $ 28,500
b. $ 28,000
c. $ 27,000
d. $ 26,500
e. $ 16,000
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT