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Ivan
4 years ago
14

4. This year, Benjamin Hassell paid $20,000 of interest on a mortgage on his home (Benjamin borrowed $600,000 in 2015 to buy the

residence and it is currently worth $1,000,000), $12,000 on a $150,000 home-equity loan on his home, and $10,000 of interest on a mortgage on his vacation home (loan of $300,000; home purchased for $400,000 in 2016; home is not rented out at any time). How much interest expense can Benjamin deduct as an itemized deduction?
Business
1 answer:
iragen [17]4 years ago
5 0

Answer:

Answer:

The nterest expense can major healy deduct as an itemized deduction is $55,000.

Explanation:

total interest expense = interest on mortgage home + interest on mortgage vacation home

                                    = $40,000 + $10,000

                                     = $50,000

total amount of mortgage pf major healy = $800,000 + $200,000

                                                                   = $1,000,000

the acquisition debt does not exceed $1,000,000 so he can deduct $40,000 mortgage interest on his home and $10,000 mortgage interest on his vacation home.

interest on home equity loan = 6,000

interest on home equity load  = [home equity debt limit/home equity load]*interest on home equity load

                                                 = [100000/120000]*6000

                                                 = $5,000

Therefore, The nterest expense can major healy deduct as an itemized deduction is $55,000.

Read more on Brainly.com - brainly.com/question/13664028#readmore

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