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?

---

Definitions:

Steatorrhea

The presence of excess fat in feces, usually indicative of malabsorption issues or diseases affecting the pancreas, liver, or gastrointestinal tract.

Bile Pigment

A component of bile, responsible for the yellow-green color, produced during the breakdown of hemoglobin in red blood cells.

Prostatitis

Inflammation of the prostate gland, which can cause urinary pain, difficulty urinating, and pelvic discomfort.

Carcinoma

A form of cancer originating either on the skin surface or in the tissue layers that line or encapsulate internal organs.