Solution-How much of the loan would produce deductible

How much of the loan would produce deductible interest

Reference no: EM133145962

Question - Earl took out a mortgage for $250,000 to purchase his home in 2007. In the current year, when the home had a fair market value of $430,000, Earl took out a home equity loan for $140,000. He used the proceeds as follows:

$90,000 for home improvements

$30,000 for payment of credit card debt, and

$20,000 for the purchase of securities which produce tax-free income.

He files as single on his tax return. How much of the $140,000 loan would produce deductible mortgage interest?

Reference no: EM133145962

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How much of the loan would produce deductible interest

Reference no: EM133145962

Reference no: EM133145962

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