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A married couple took out a mortgage on their home for $220,000 seven years ago. In July of this year, when the home had a
A married couple took out a mortgage on their home for $220,000 seven years ago. In July of this year, when the home had a fair market value of $250,000 and they owed $140,000 on the mortgage, they took out a home equity loan for $120,000. They used the funds to take their entire family on a grand cruise to Australia. What is the maximum amount of home equity indebtedness on which they can deduct home equity interest?
$100,000 |
$120,000 |
$90,000 |
$220,000 |
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