On January 2, 2008, the Philips paid $50,000 cash and obtained a $200,000 mortgage to purchase a home.?

K

Katelyn

New member
On January 2, 2008, the Philips paid $50,000 cash and obtained a $200,000 mortgage to purchase a home. In 2011 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 2011:
Mortgage interest
$17,000
Interest on room construction loan
1,500
Auto loan interest
500
For 2011, how much interest is deductible, prior to any itemized deduction limitations?
 
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