An instructor at the Kelley School indicated that you may be able to help me. My name is Mel Smith and I live in Indianapolis. I have twin daughters who are starting college next fall at Northwestern University in Chicago. The original plan was for the girls to live in the dorm. However, the amount the University charges for what they would get is unbelievably high. I just don’t want to pay rent for four years (or more). I’m considering buying a condominium close to Northwestern and having them live there instead of the dorm. I think it would be a good investment and clearly much better than paying rent. I have identified a condo selling for $300,000 that would be terrific. When the girls leave Chicago, I will probably sell the condo. I would need to borrow $240,000 to buy it, and what I want to know is whether I can deduct the interest expense on the loan. If you have questions or need additional information, please contact me, Mel, by messaging the research course instructor at her IUPUI email address.

This a tax assigment, I am writing a memo. what Internal Revenue Code could I use for this situation? what is Issue in this problem?

Answer rating: 100% (QA)

Answer Yes you can deduct the interest expense on loan Stepbystep explanation Typically loan interes... View the full answer