In January 2022, a taxpayer takes out a $500,000 mortgage to purchase a main home with a fair market value of $800,000. In February 2022, the taxpayer takes out a $250,000 home equity loan to put an addition on the main home. Both loans are secured by the main home and the total does not exceed the cost of the home. What percentage of the interest paid on the loans is deductible on the taxpayer's income tax return?

Answer rating: 100% (QA)

Deductible Interest Percentage on Loans For tax years 2018 through 2025 the interest paid on home eq... View the full answer