Faith takes out a $250000 home equity loan and secures the loan with her main home. she withdraws $50000 in cash to buy stocks . which of the following is correct based on interest tracing rules ?

a) Faith can deduct the interest attributable to the purchase of the stocks as home mortgage interest since the loan is secured by her main home . the interest is fully deductible on schedule A. 

b)Faith can not deduct the interest attributable to the purchase of the stocks because it is considered personal interest , therefore, not deductible.  

Answer rating: 100% (QA)

The detailed answer for the above question is provided below b Faith cannot deduct the interest ... View the full answer