This Year, Benjamin Hassell Paid $20,000 of Interest on a Mortgage

question 5

Essay

This year, Benjamin Hassell paid $20,000 of interest on a mortgage on his home (Benjamin borrowed $600,000 in 2015 to buy the residence and it is currently worth $1,000,000), $6,000 on a $75,000 home-equity loan on his home (proceeds used to buy a car and pay off consumer debt), and $10,000 of interest on a mortgage on his vacation home (loan of $300,000; home purchased for $400,000 in 2016).How much interest expense can Benjamin deduct as an itemized deduction?

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Definitions:

Authoritarian

A governing or leadership style characterized by strong, central control and little personal freedom.

Asian-American

A term referring to Americans of Asian descent, highlighting the diverse ethnic groups from the Asian continent that contribute to the American population.

Neglectful

A type of behavior or attitude characterized by a lack of attention, care, or concern towards something or someone.

Expression of Anger

The ways in which an individual exhibits or communicates feelings of annoyance, frustration, or rage.