Multiple Choice
Joseph and Sandra, married taxpayers, took out a mortgage on their home for $350,000 15 years ago. In May of this year, when the home had a fair market value of $450,000 and they owed $250,000 on the mortgage, they took out a home equity loan for $220,000. They used the funds to purchase a single engine airplane to be used for recreational travel purposes. What is the maximum amount of debt on which they can deduct home equity interest?
A) $50,000
B) $100,000
C) $220,000
D) $230,000
E) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q6: Shirley pays FICA (employer's share) on the
Q39: Bill paid $2,500 of medical expenses for
Q57: Chad pays the medical expenses of his
Q65: In 2018, Rhonda received an insurance reimbursement
Q68: Joe, a cash basis taxpayer, took out
Q70: In 2017, Allison drove 800 miles to
Q71: In Lawrence County, the real property tax
Q73: Brad, who uses the cash method of
Q75: A taxpayer pays points to obtain financing
Q88: For purposes of computing the deduction for