# Juanita paid $50,000 of interest on a mortgage on her home (loan of $1,000,000 at 5% interest

## Question:

Juanita paid $50,000 of interest on a mortgage on her home (loan of $1,000,000 at 5% interest rate to buy the residence in 2018; $1,200,000 original purchase price and value at purchase) and $6,500 of interest on a $100,000 home-equity loan on her home (loan proceeds were used to buy furniture). Juanita’s AGI is $600,000. How much interest expense can Juanita deduct as an itemized deduction?

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**Related Book For**

## Essentials Of Federal Taxation 2019

**ISBN:** 9781260190045

10th Edition

**Authors:** Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver