Question
Maryanne paid the following interest in 2022: !$3,000 student loan interest !$11,000 investment interest (not related to rental/royalty property) !$13,000 mortgage interest on principal residence
Maryanne paid the following interest in 2022: !"$3,000 student loan interest !"$11,000 investment interest (not related to rental/royalty property) !"$13,000 mortgage interest on principal residence !"$12,000 interest on loan that Maryanne used to purchase a rental home !"$2,500 home-equity loan interest !"$1,500 interest on personal credit card used to purchase clothes, food and travel !"$500 interest on loan used to purchase municipal bonds Maryanne had investment income of $10,000 and investment expenses of $1,000 in 2022. Maryanne's 2022 AGI is $56,000. Maryanne took out the mortgage in 2019 to purchase her principal residence, and the current loan principal is $500,000. The home equity loan was obtained in 2021 to purchase a new car and is secured by her principal residence. The current loan principal is $50,000. What amount of interest can Maryanne deduct as an itemized deduction in 2022? Can Maryanne deduct the student loan interest payments? What about the interest on the loan used to purchase the rental property? What if Maryanne used the home equity loan to remodel her principal residence instead of purchase a car?
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