Hi there,

An instructor at the Kelley School indicated that you may be able to help me$.$ My name is Mel Smith and I live

in Indianapolis. I have twin daughters who are starting college next fall at Northwestern University in Chicago.

The original plan was for the girls to live in the dorm. However, the amount the university charges for what

they would get is unbelievably high. I just don$$t want to pay rent for four years $($or more$).$ I$$m considering

buying a condominium close to Northwestern and having them live there instead of the dorm. I think it would

be a good investment and clearly much better than paying rent. I have identified a condo selling for $$300,000$

that would be terrific. When the girls leave Chicago, I will probably sell the condo. I would need to borrow

$$240,000$ to buy it$,$ and what I want to know is whether I can deduct the interest expense on the loan. If you have

questions or need additional information, please contact me$,$ Mel, by messaging the research course instructor at

her IUPUI email address.

Thanks,

Mel

P$.$S$.$ Please understand that I try and check my messages as often as possible, but I am not always

available.

Date:

To: File

From: Student$$s name $($course number$)$

Re: Treatment of interest expense

Facts

Issue

Analysis

ConclusionHi there,

An instructor at the Kelley School indicated that you may be able to help me$.$ My name is Mel Smith and I live

in Indianapolis. I have twin daughters who are starting college next fall at Northwestern University in Chicago.

The original plan was for the girls to live in the dorm. However, the amount the university charges for what

they would get is unbelievably high. I just don$$t want to pay rent for four years $($or more$).$ I$$m considering

buying a condominium close to Northwestern and having them live there instead of the dorm. I think it would

be a good investment and clearly much better than paying rent. I have identified a condo selling for $$300,000$

that would be terrific. When the girls leave Chicago, I will probably sell the condo. I would need to borrow

$$240,000$ to buy it$,$ and what I want to know is whether I can deduct the interest expense on the loan. If you have

questions or need additional information, please contact me$,$ Mel, by messaging the research course instructor at

her IUPUI email address.

Thanks,

Mel

P$.$S$.$ Please understand that I try and check my messages as often as possible, but I am not always

available.

Date:

To: File

From: Student$$s name $($course number$)$

Re: Treatment of interest expense

Facts

Issue

Analysis

Conclusion