akes out a $200,000 home equity loan to put an addition on the main home.  Both loans are secured by the main

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 37P
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In January 23021, Roger takes out $500,000 mortgage to purchse a main homef with a fair market value of $2,000.000.  In February 2021, the taxpayer takes out a $200,000 home equity loan to put an addition on the main home.  Both loans are secured by the main home and the total does not exceed the cost of the home.  in 2021, Roger pays $10,000 interest on the first mortgage and $7,000 interested on the home equity loan.  How much of the interest is deductible?

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