In January 2021, Patricia takes out a $500,000 mortgage to purchase a primary home with an $800,000 FMV. In February 2021, she takes out a $250,000 home equity loan to add to the primary home. Both loans are secured by the main home and the total does not exceed the cost of the home. During 2021 Patricia paid interest of $7,000 on the loans and therefore she will be able to deduct how much of the interest paid on her tax return?

Answer rating: 100% (QA)

Mortgage Interest Deduction Patricias mortgage is 500000 Under the TCJA rules she can fully deduct ... View the full answer