Question

What is the tax consequence for the scenario below and what draft form does the deduction go on?

The Schnappaufs receive two Form 1098s for the cost of interest on bank loans. They also pay interest on their personal credit cards.

Jefferson Trust 1098 Wakefield House: $8140.

Jefferson Trust 1098 Home equity: $5100.

Dempsey's department store revolving account: $191.

Brooks' bargain basement revolving account: $67.

Jefferson Trust Bank card: $212.

The proceeds from the home equity loan were used to renovate their kitchen and pay for their son Tom's tuition to private school. The interest on the portion of the loan used for private school tuition is $640.

Answer 1

The below deductions go on Form 1040 and itemize deductions on Schedule A
		Jefferson Trust 1098 Wakefield House	8140
		Jefferson Trust 1098 Home equity	4460
Total                                                     5100
Less: Interest on Tuition Fee             640
Tax Deductions	12600