In 2004 roland who is single purchased a personal residence

Reference no: EM13566373

In 2004, Roland, who is single, purchased a personal residence for $340,000 and took out a mortgage of $200,000 on the property. In May of the current year, when the residence had a fair market value of $440,000 and Roland owed $140,000 on the mortgage, he took out a home equity loan for $220,000. He used the funds to purchase a recreational vehicle, which he uses 100% for personal use.

a. Can Roland deduct all of the interest related to the original mortgage?

b. Can Roland deduct all of the interest related to the home equity loan of $220,000?

c. For the current year, the maximum amount of debt on which Roland can deduct interest is $.

Reference no: EM13566373

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