Margaret Lindley paid $15,000 of interest on her $300,000 ac…
Margaret Lindley paid $15,000 of interest on her $300,000 acquisition debt for her home (purchased in 2019 at a fair market value of $500,000) and $4,000 of interest on her $60,000 home-equity debt. The proceeds of the home-equity loan were used to construct a bedroom addition on Margaret’s home. She also incurred $1,000 of credit card interest. How much of the interest expense may she deduct this year as an itemized deduction?