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Juanita paid $50,000 of interest on a mortgage on her home (loan of $1,000,000 at 5% interest rate to buy the residence in 2018; $1,200,000
Juanita paid $50,000 of interest on a mortgage on her home (loan of $1,000,000 at 5% interest rate to buy the residence in 2018; $1,200,000 original purchase price and value at purchase) and $6,500 of interest on a $100,000 home-equity loan on her home (loan proceeds were used to buy furniture). Juanitas AGI is $600,000.
How much interest expense can Juanita deduct as an itemized deduction?
I know the answer would be $750,000 x 5% for the mortgage interest, but I am just wondering why the home-equity loan interest would not also be deducible
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