Joseph and Sandra, Married Taxpayers, Took Out a Mortgage on Their

Joseph and Sandra, married taxpayers, took out a mortgage on their home for $350,000 15 years ago. In May of this year, when the home had a fair market value of $450,000 and they owed $250,000 on the mortgage, they took out a home equity loan for $220,000. They used the funds to purchase a single engine airplane to be used for recreational travel purposes. What is the maximum amount of debt on which they can deduct home equity interest?

A) $50,000
B) $100,000
C) $220,000
D) $230,000
E) None of the above