purchase the home in 2010; home purchased for $400,000). Major Healy's AGI is $220,000. How much interest expense can Major Healy deduct as an itemized deduction? Interest Deductible

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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This year, Major Healy paid $35,500 of interest on a mortgage on his home (he borrowed $710,000 to buy the residence in 2015;
$810,000 original purchase price and value at purchase), $5,500 of interest on a $110,000 home equity loan on his home (loan
proceeds were used to buy antique cars), and $8,000 of interest on a mortgage on his vacation home (borrowed $160,000 to
purchase the home in 2010; home purchased for $400,000). Major Healy's AGI is $220,000. How much interest expense can Major
Healy deduct as an itemized deduction?
Interest Deductible
Transcribed Image Text:This year, Major Healy paid $35,500 of interest on a mortgage on his home (he borrowed $710,000 to buy the residence in 2015; $810,000 original purchase price and value at purchase), $5,500 of interest on a $110,000 home equity loan on his home (loan proceeds were used to buy antique cars), and $8,000 of interest on a mortgage on his vacation home (borrowed $160,000 to purchase the home in 2010; home purchased for $400,000). Major Healy's AGI is $220,000. How much interest expense can Major Healy deduct as an itemized deduction? Interest Deductible
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