Multiple Choice
Joseph and Sandra,married taxpayers,took out a mortgage on their home for $350,000 in 1989.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
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