This year, Benjamin Hassell paid $16,200 of interest on a mortgage on his home (Benjamin borrowed $540,000 in 2015 to buy the residence and it is currently worth $864,000), $12,200 on a $152,500 home-equity loan on his home, and $10,350 of interest on a mortgage on his vacation home (loan of $345,000; home purchased for $445,000 in 2016; home is not rented out at any time). How much interest expense can Benjamin deduct as an itemized deduction?
Particulars | Amount |
Home mortgage interest | $ 16,200 |
Home equity loan | $ - |
Second home mortgage int | $ 10,350 |
Total | $ 26,550 |
Itemized interest deduction is $26,550.
Home equity loan is not deductible unless used to buy, built, renovate home.
Please rate.
Get Answers For Free
Most questions answered within 1 hours.