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kherson [118]
4 years ago
12

Bill has a mortgage loan on his personal residence. he decides to pay 18 months of interest in advance on october 1, 2016. the t

otal advanced interest payment is $36,000. how much of the advance interest payment can he deduct in 2016?
a. $36,000
b. $6,000
c. $24,000
d. mortgage interest is not deductible.
e. if a taxpayer makes an advance payment, he may not deduct any interest.
Business
1 answer:
VARVARA [1.3K]4 years ago
3 0
<span>In theory, Bill can deduct $36000 from his 2016 taxes. However, there are often caps on deductions, so there is really not enough information.</span>
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