Question

Marco makes the mortgage payments on several properties. He paid mortgage interest of $6,048 on his personal home, $5,261 on his vacation home (used only for personal purposes), $4,995 on his mother’s home (the mother is legally liable for the debt), and $7,642 on his rental property. How much mortgage interest can Marco deduct as an itemized deduction on Schedule A?

Select one:

a. $23,946

b. $11,309

c. $12,637

d. $6,048

Answer 1

Marco can deduct $23,946 as mortgage interest on his tax return.

Step-by-step explanation:

To determine how much mortgage interest Marco can deduct as an itemized deduction on Schedule A, we need to consider the following:

• Mortgage interest on a personal home is deductible
• Mortgage interest on a vacation home used only for personal purposes is deductible
• Mortgage interest on someone else's home where they are legally liable for the debt is not deductible
• Mortgage interest on a rental property is deductible

Using this information, we can calculate that Marco can deduct $6,048 (mortgage interest on his personal home) + $5,261 (mortgage interest on his vacation home) + $7,642 (mortgage interest on his rental property) = $18,951.

Therefore, the correct option is choice a. $23,946.