On January 2, Year 1, the Philips paid $50,000 cash and obtained a $200,000 mortgage to purchase a home.
In Year 4 they borrowed $15,000 secured by their home, and used the cash to add a new room to their residence. That same year they took out a $5,000 auto loan.
The following information pertains to interest paid in Year 4:
Mortgage interest $17,000Interest on room construction loan 1,500Auto loan interest 500
For Year 4, how much interest is deductible to any itemized deduction limitations?
Thank you for the opportunity to help you with your question!
184500 is the correct answer as there are interest when we add them we get it
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