Based on the following:

2017 Schedule A (attached)

2018 Schedule A (Google and find on your own)

2018 Schedule A instructions (Google an find on your own)

1.Compare the 2017 and 2018 Schedule A's.Note a subtle but important difference between the two forms as it relates to the taxes you paid deduction.

2.Refer to the instructions for line 8 (Home Mortgage Interest Deduction).

Assume taxpayer borrowed $1.5 million to purchase a home on January 1, 2017 at 4% interest.Assume the taxpayer pays only interest and does not repay any of the principal.

2a What is the annual interest cost (a mathematical question, not a tax question)

2b. Copy and paste instructions on "Limit on loans taken out on or before December 15, 2017."