This year, Major Healy paid $34,000 of interest on a mortgage on his home (he borrowed $680,000 to buy the residence in 2015; $780,000 original purchase price and value at purchase), $5,250 of interest on a $105,000 home equity loan on his home (loan proceeds were used to buy antique cars), and $6,500 of interest on a mortgage on his vacation home (borrowed $130,000 to purchase the home in 2010; home purchased for $325,000). Major Healy's AGI is $220,000. How much interest expense can Major Healy deduct as an itemized deduction? Answer is complete but not entirely correct. $ Interest Deductible 45,500