Valeria owns a home worth $1,400,000,with a mortgage balance of $950,000.She borrows $200,000 to purchase a speedboat,using a home equity loan.What is the total amount of debt on which Valeria can deduct interest in the current year?
A)$1,000,000
B)$950,000
C)$1,050,000
D)$1,100,000

Question

Quizplus · Accepted Answer

C)The home equity indebtedness is limited to $100,000.This is in addition to the acquisition indebtedness of $950,000.

Valeria Owns a Home Worth $1,400,000,with a Mortgage Balance of $950,000.She