Question
Senan bought a home in 2012 for $625,000 financing $550,000 of the purchase price with a 30-year mortgage. In 2019 when his existing mortgage balance
Senan bought a home in 2012 for $625,000 financing $550,000 of the purchase price with a 30-year mortgage. In 2019 when his existing mortgage balance was $520,000, he took out another loan for $150,000. He used the proceeds to pay off credit card debt of $40,000 and purchase a car for $85,000; the balance he used to buy an anniversary wedding ring for his wife. In 2019, he paid $30,000 interest on the mortgage and paid interest only of $6,600 on the other loan. What is his deduction for qualified residential interest for 2019?
A. | $6,600. | |
B. | some other amount. | |
C. | $30,000. | |
D. | $36,600. | |
E. | $34,400. |
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