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In 2018, Cathy buys a house (her principal residence) for $2,000,000, paying $500,000 down and borrowing the other $1,500,000 at 5% interest. If her interest
In 2018, Cathy buys a house (her principal residence) for $2,000,000, paying $500,000 down and borrowing the other $1,500,000 at 5% interest. If her interest expense for the year is $75,000, how much will her maximum deduction for interest expenses be?
| $75,000 | ||
| $50,000 | ||
| $37,500 | ||
| $0 | ||
| None of these |
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