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 is the sum of the interest paid on mortgage debt up to $750,000 plus the interest paid on home equity debt up to $100,000. 
In this case, they paid $8,000 in mortgage interest and $150 in home equity interest, which totals $8,150. However, the home equity interest is limited to $100,000, so the maximum amount they can use as interest expense is $8,000 (mortgage interest) + $100 (home equity interest) = $3,150.

Jerry and Ann Paid the Following Amounts During the Current