Melvin owns his home and has a $200,000 mortgage related to his purchase of the residence. In the fall of 2014, he borrows $40,000 on credit cards for college costs for his two sons. The interest expense on the mortgage is $15,000 and the interest expense on the credit cards is $6,000. How much of the interest is deductible as an itemized deduction and why? If you were Melvin's accountant, what tax planning suggestion might you have made to him?

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The Answer of Melvin owns his home and has a $200,000 mortgage related to his purchase of the residence. In the fall of 2014, he borrows $40,000 on credit cards for college costs for his two sons. The interest expense on the mortgage is $15,000 and the interest expense on the credit cards is $6,000. How much of the interest is deductible as an itemized deduction and why? If you were Melvin's accountant, what tax planning suggestion might you have made to him?

Melvin Owns His Home and Has a $200,000 Mortgage Related