This year, Major Healy paid $34,750 of interest on a mortgage on his home (he borrowed $695,000 to buy the residence in 2015; $795,000 original purchase price and value at purchase), $5,250 of interest on a $105,000 home equity loan on his home E proceeds were used to buy antique cars), and $7,250 of interest on a mortgage on his vacation home (borrowed $145,000 to purchase the home in 2010; home purchased for $362,500). Major Healy's AGI is $220,000. How much interest expense can Major Healy deduct as an itemized deduction? Interest Deductible