Jerry and Ann paid the following amounts during the current year: What is the maximum amount they can use as interest expense in calculating itemized deductions for the current year?

Question

Quizplus · Accepted Answer

The maximum amount they can use as interest expense in calculating itemized deductions for the current year is $3,150. This is calculated by adding the interest paid on their primary residence ($2,000), interest paid on their second home ($1,000), and interest paid on their credit card debt ($150). The interest paid on the car loan cannot be included as it is not typically tax deductible.

Jerry and Ann Paid the Following Amounts During the Current