This Year, Carol, a Single Taxpayer, Purchased a Vacation Home

question 30

Multiple Choice

This year, Carol, a single taxpayer, purchased a vacation home for $400,000 using an equity debt of $350,000 on her principal residence. Carol has no other debt on her principal residence. Carol paid $16,000 of interest on the debt this year. How much of this interest is deductible assuming Carol itemizes her deductions?

• A) $0
• B) $10,000
• C) $16,000
• D) $125,000
• E) None of the above

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Unconscious beliefs or feelings towards objects, people, or situations that can influence behavior and perceptions.

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