1. Shady McCoy incurred a total of $20,000 in medical expenses and was only reimbursed for $11,000 of the expenses by his health insurance. His modified AGI is $172,900.

Reimbursed medical expenses are subtracted from total qualified medical expenses before calculating medical expense deduction.

What is Shadys medical expense deduction?___________________________

2. Interest may be deducted on loans up to $1,000,000, the applicable limit on acquisition indebtedness incurred before December 16, 2017.

After December 16, 2017, only interest on loans up to $750,000 may be deducted.

Only the amount of the loan and the date of the loan matters. Ignore the value of the house and the purchase price.

Interest on home equity loans can no longer be deducted.

This year, Major Payne paid $40,000 of interest on a mortgage on his home (he borrowed $800,000 to buy the residence in 2015; $900,000 original purchase price and value at purchase), $6,000 of interest on a $120,000 home equity loan on his home (loan proceeds were used to buy antique cars), and $10,000 of interest on a mortgage on his vacation home (borrowed $200,000 to purchase the home in 2010; home purchased for $500,000). Major Paynes AGI is $220,000.

a. What is the total amount that Major Payne borrowed for mortgages to buy houses, excluding home equity loans?

b. Were any of the mortgage loans acquired after December 16, 2017?

c. Based on this, Major Payne can deduct interest on mortgage loans up to $________________.

d. Major Payne can deduct this much interest expense as an itemized deduction, _____________.