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Joe Taxpayer has a mortgage on his principal residence of $300,000. He receives a home equity loan of $100,000 of which $60,000 was used to

Joe Taxpayer has a mortgage on his principal residence of $300,000. He receives a home equity loan of $100,000 of which $60,000 was used to add a bathroom and $40,000 was spent on a new car. The interest on the loan was $10,000. How much, if any, is deductible.

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