Several years ago,Ross,who is single,purchased a personal residence for $200,000 and took out a mortgage of $130,000 on the property.In May of the current year,when the residence had a fair market value of $270,000 and Ross owed $80,000 on the mortgage,he took out a home equity loan for $110,000.He used the funds to purchase a BMW for himself and a Lexus SUV for his wife.For both vehicles,100% of the use is for personal use.What is the maximum amount on which Ross can deduct home equity interest?

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The Answer of Several years ago,Ross,who is single,purchased a personal residence for $200,000 and took out a mortgage of $130,000 on the property.In May of the current year,when the residence had a fair market value of $270,000 and Ross owed $80,000 on the mortgage,he took out a home equity loan for $110,000.He used the funds to purchase a BMW for himself and a Lexus SUV for his wife.For both vehicles,100% of the use is for personal use.What is the maximum amount on which Ross can deduct home equity interest?

Several Years Ago,Ross,who Is Single,purchased a Personal Residence for $200,000