Question: Lila personally bought three insurance policies on her life She
Lila personally bought three insurance policies on her life. She borrowed $ 28,500 and prepaid the first five years’ worth of annual payments on a whole life policy. In addition, she borrowed $ 4,200 and paid one of the two required premiums on a group term policy through her professional organization. Finally, she borrowed $ 3,000 and bought utilities mutual fund shares. The principal and interest of the fund’s assets are to be appropriated in a timely fashion by Lila to make payments on a five-premium endowment contract. Interest charges for the three loans were $ 2,500, $ 420, and $ 310, respectively. How much of this interest can Lila deduct?
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