Ross, Who Is Single, Purchased a Personal Residence Eight Years

question 60

Essay

Ross, who is single, purchased a personal residence eight years ago for $170,000 and took out a mortgage of $100,000 on the property. In May of the current year, when the residence had a fair market value of $220,000 and Ross owed $70,000 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 activities. What is the maximum amount on which Ross can deduct home equity interest?

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Definitions:

Kinesthesis

The capability to feel the position, the weight, or the activity of muscles, tendons, and joints.

Vestibular Sense

A sensory system located in the inner ear that provides the leading contribution to the sense of balance and spatial orientation for the purpose of coordinating movement with balance.

Sensory Interaction

The process by which different senses like sight, hearing, and touch influence each other, affecting the way we perceive the world.

Nociceptors

Sensory receptors that detect harmful stimuli, sending pain signals to the brain in response to potentially damaging or dangerous conditions.