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Can sarah sanders deduct the interest on the remaining loan

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Problem 1: Sara Sanders borrowed $640,000 and invested the entire loan proceeds in publicly traded securities. After 8 months, the securities' value dropped to $200,000. At this point, Sara Sanders sold the securities and used the proceeds to reduce the loan to $440,000. Since she no longer owns the securities, can Sarah Sanders deduct the interest on the remaining loan amount of $440,000?

Reference no: EM132993462

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