Question

This year, Benjamin Hassell paid $16,200 of interest on a mortgage on his home (Benjamin borrowed...

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?

Homework Answers

Answer #1
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.

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