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Dorothie paid the following amounts during the current year: Interest on her home mortgage (pre-12/16/17) Service charges on her checking account Credit card interest
Dorothie paid the following amounts during the current year: Interest on her home mortgage (pre-12/16/17) Service charges on her checking account Credit card interest Auto loan interest Interest from a home equity line of credit (HELOC) Interest from a loan used to purchase stock Credit investigation fee for loan $9,250 48 168 675 2,300 1,600 75 Dorothie's residence has a fair market value of $250,000. The mortgage is secured by the home at the time of purchase and has a balance of $180,000. Dorothie used the same home to secure her HELOC with a balance of $50,000. Dorothie used the proceeds of her HELOC to pay for college and to buy a new car. Dorothie has $1,000 of net investment income. Compute Dorothie's interest deduction in the following scenarios: a. Use the Interest You Paid section of Schedule A to calculate Dorothie's interest deduction for 2021. $ b. Same as part a, and Dorothie used the HELOC proceeds to add a new bedroom to her home. $ c. Same as part a, but Dorothie's home is valued at $1.2 million and her mortgage balance is $900,000. $
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