The Rins own a home in Boston. They paid $780,000 for their home three years ago. Their current balance on their mortgage is $660,000. At the time that their home was worth $900,000, they refinanced their mortgage. Their new mortgage is for $800,000. In addition to the home in Buston, the Rins alco own a vacation home in Florida. They paid $350,000 for the home several yeas ago, and the current mortgage on the seconed home is $295,000. How much inretest the Rins are allowed to deduct if the excess proceeds from the refinanceing are used to buy or improvement their main home.
The Rins own a home in Boston. They paid $780,000 for their home three years ago. Their current balance on their mortgage is $660,000. At the time that their home was worth $900,000, they refinanced their mortgage. Their new mortgage is for $800,000. In addition to the home in Buston, the Rins alco own a vacation home in Florida. They paid $350,000 for the home several yeas ago, and the current mortgage on the seconed home is $295,000.
How much inretest the Rins are allowed to deduct if the excess proceeds from the refinanceing are used to buy or improvement their main home.
Compute the total mortgage amount:
|
Particulars |
Amount ($) |
|
Current mortgage on main home |
$660,000 |
|
Current mortgage on vacation home |
$295,000 |
|
Total mortgage amount |
$955,000 |
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