Rick and Cathy Ott, married taxpayers, took out a mortgage of $360,000 when purchasing their home...

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Rick and Cathy Ott, married taxpayers, took out a mortgage of $360,000 when purchasing their home in Wisconsin ten years ago. In October of this year, the Otts purchased a vacation home in the Colorado mountains for $350,000. They paid $10,000 down in cash. The remaining $340,000 was financed as follows: $140,000 borrowed using their WI home as collateral, and $200,000 borrowed using the CO vacation home as collateral. 2020 interest on the loans are: $14,400 on the original loan on the WI home (purchase mortgage) • $1,750 on the $140,000 loan on the WI home (home equity loan) $2.500 on the $200,000 loan on the CO home (purchase mortgage) If the Otts itemize deductions, what is their amount of deductible interest? $16.150 $18,650 $16,900 $14,400 Rick and Cathy Ott, married taxpayers, took out a mortgage of $360,000 when purchasing their home in Wisconsin ten years ago. In October of this year, the Otts purchased a vacation home in the Colorado mountains for $350,000. They paid $10,000 down in cash. The remaining $340,000 was financed as follows: $140,000 borrowed using their WI home as collateral, and $200,000 borrowed using the CO vacation home as collateral. 2020 interest on the loans are: $14,400 on the original loan on the WI home (purchase mortgage) • $1,750 on the $140,000 loan on the WI home (home equity loan) $2.500 on the $200,000 loan on the CO home (purchase mortgage) If the Otts itemize deductions, what is their amount of deductible interest? $16.150 $18,650 $16,900 $14,400

Answer rating: 100% (QA)

Answer 16900 14400 1750 2500 16900 14400 on the original loan on th... View the full answer