The Greenfields? 2014 AGI is $98,500, which includes $620 of taxable interest income. They incurred the following interest expenses during the year

The Greenfields originally paid $260,000 for their main home. At the beginning of 2014, the home was worth $300,000 and the balance on the mortgage on their main home was $138,000. On May 1, 2014, the Greenfields refinanced the mortgage on their main home with a $190,000, 10-year loan. They used the extra proceeds to buy a new car, take a vacation, and consolidate other loans. Compute the Greenfields? 2014 interest expense deduction on Schedule A.

Credit card interest Automobile loan interest (on their older car) Mortgage interest on their main home prior to refinancing Mortgage interest on their main home after refinancing Points paid on main home refinancing ($190,000 x 3%) Mortgage interest on vacation home Investment interest expense on a loan to purchase corporate stocks Investment interest expense on a loan to purchase tax-exempt bonds $ 79 337 6,300 7,200 5,700 13,080 543 381