Question: Please note that this question below is different than the questions-answers Chegg has. Please show your work. Thank you! This year, Major Healy paid $40,000
Please note that this question below is different than the questions-answers Chegg has.
Please show your work. Thank you!
This year, Major Healy paid $40,000 of interest on a mortgage on his home (Major Healy borrowed $800,000 to buy the residence in 2015; $900,000 original purchase price and value at purchase),
$6,000 of interest on a $120,000 home equity loan on his home (loan proceeds were used to buy antique cars),
and $10,000 of interest on a mortgage on his vacation home (borrowed $200,000 to purchase the home in 2010; home purchased for $500,000).
Major Healys AGI is $220,000. How much interest expense can Major Healy deduct as an itemized deduction?
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