Randolph is single. He took out a $550,000 mortgage to purchase a main home in February 2020. The loan is secured by the home. In April 2021, Randolph decided to buy an RV to use as a vacation home. The mortgage loan was $200,000 and is secured by the RV. Which of the following is correct? a) The mortgage interest for the RV is not deductible because the main home was not used to secure the loan. b) The mortgage interest is limited to $375,000. c) The RV purchase does not meet the definition of a home; therefore, the deductible mortgage interest is limited to $550,000. d) The total of both mortgages does not exceed $750,000; therefore, all of the interest paid on both mortgages is deductible.
Mf3.
Randolph is single. He took out a $550,000 mortgage to purchase a main home in February 2020. The loan is secured by the home. In April 2021, Randolph decided to buy an RV to use as a vacation home. The mortgage loan was $200,000 and is secured by the RV. Which of the following is correct?
a) The mortgage interest for the RV is not deductible because the main home was not used to secure the loan.
b) The mortgage interest is limited to $375,000.
c) The RV purchase does not meet the definition of a home; therefore, the deductible mortgage
interest is limited to $550,000.
d) The total of both mortgages does not exceed $750,000; therefore, all of the interest paid on both
mortgages is deductible.
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