• Mary started 2019 by purchasing a new home in January. Her house had a purchase price of $900,000. She paid $100,000 in cash and took out an $800,000 recourse mortgage to cover the remainder of the purchase price. In June of that year, Mary took out an additional recourse loan of $200,000, also secured by the home. She spent $70,000 of the proceeds from the June loan improving her kitchen, and used the remaining $130,000 to buy a Range Rover

• Describe the tax consequences of each of the above to each of the parties involved.

Answer rating: 100% (QA)

Purchase price Paid Loan 900000 1000... View the full answer