William took out a $440,000 mortgage to purchase his personal residence. The residence is worth almost $1 million, and William wants to take out a $200,000 second mortgage and use the proceeds to consolidate his credit card debt. William can deduct the interest he pays on both mortgages.

Question

Quizplus · Accepted Answer

The interest on the second mortgage used to consolidate credit card debt is not deductible because the loan proceeds were not used to buy, build, or substantially improve the taxpayer's home, which are the requirements for mortgage interest deduction under the Tax Cuts and Jobs Act of 2017.

William Took Out a $440,000 Mortgage to Purchase His Personal