Problem 5-23 Interest (LO 5.8)

Ken paid the following amounts for interest during 2021:

Qualified interest on home mortgage per Form 1098	$7,310
Auto loan interest	850
"Points" on the mortgage for acquisition of his personal residence per Form 1098	1,200
Home equity loan interest (proceeds used to pay for college)	500
Mastercard interest	300

Calculate Ken's itemized deduction for interest on the following portion of Schedule A.

If a line item is zero, enter "0". Enter all amounts as positive numbers.

Interest You Paid Caution: Your mortgage interest deduction may be limited (see instructions).

8

Home mortgage interest and points. If you didn't use all of your home mortgage loan(s) to buy, build, or improve your home, see instructions and check this box . . . . . . . . . . . . . . . . . . . .

a

Home mortgage interest and points reported to you on Form 1098. See instructions if limited

8a

fill in the blank 1

b

Home mortgage interest not reported to you on Form 1098. See instructions if limited. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

8b

c

Points not reported to you on Form 1098. See instructions for special rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8c

d

Mortgage insurance premiums (see instructions) . . . . . . . . . . . . . . . . .

8d

e

Add lines 8a through 8d . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8e

fill in the blank 2

9

Investment interest. Attach Form 4952 if required. See instructions.

9

10

Add lines 8e through 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

fill in the blank 3