Question: this year major healy paid 33250 of interest on a...
This year, Major Healy paid $33,250 of interest on a mortgage on his home (he borrowed $665,000 to buy the residence in 2015; $765,000 original purchase price and value at purchase), $5,000 of interest on a $100,000 home equity loan on his home (loan proceeds were used to buy antique cars), and $5,750 of interest on a mortgage on his vacation home (borrowed $115,000 to purchase the home in 2010; home purchased for $287,500). Major Healy’s AGI is $220,000. How much interest expense can Major Healy deduct as an itemized deduction?
What is the Interest Deductible? Please show work.