Wayne, a single taxpayer, purchases a new home valued at $725,000, in 2021, borrowing $625,000...
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Wayne, a single taxpayer, purchases a new home valued at $725,000, in 2021, borrowing $625,000 from Century National Bank. He also pays $7,250 in points. During 2021 he pays interest of $71,000 on the loan. He also pays $32,000 in real estate taxes during 2021. Wayne pays state income taxes of $25,000.
What is Wayne's allowable interest deduction on Schedule A in 2021?
a. $ - 0 -
b. $ 7,250
c. $71,000
d. $78,250
e. $82,750
Wayne, a single taxpayer, purchases a new home valued at $725,000, in 2021, borrowing $625,000 from Century National Bank. He also pays $7,250 in points. During 2021 he pays interest of $71,000 on the loan. He also pays $32,000 in real estate taxes during 2021. Wayne pays state income taxes of $25,000.
What is Wayne's allowable interest deduction on Schedule A in 2021?
| a. | $ - 0 - | |
| b. | $ 7,250 | |
| c. | $71,000 | |
| d. | $78,250 | |
| e. | $82,750 |
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