hard · Certified Financial Planner General Principles

The Keene family owns a home with a fair market value of 950,000 and a mortgage of400,000. They also have a 50,000 Home Equity Line of Credit (HELOC) used entirely to pay for their son's graduate school.

For 2026, which portion of their interest is deductible as an itemized deduction?

  1. Interest on the mortgage plus $2,500 of HELOC interest
  2. Interest on the full $450,000 of debt
  3. None of the interest is deductible because they are in the 35% bracket
  4. Only the interest on the $400,000 mortgage

Sign up free to see the explanation and track your rank →

More Certified Financial Planner General Principles practice

KomFi: Test Prep Made Easy

KomFi: Test Prep Made Easy — free adaptive practice for GMAT, GRE, SAT, ACT, National Real Estate Exam, Investment Banking, and finance with full explanations.

KomFi Academy is free GMAT prep and personalized GMAT help built as a training platform: 89,613+ practice questions, 30,000+ flashcards, on-demand video lectures, podcasts, and 4K slide decks. Flagship tracks: Free GMAT Prep, Free GMAT Resources, National Real Estate Exam Prep, Investment Banking Prep, Finance Prep, GRE, SAT, ACT, LSAT, MCAT, Financial Accounting, Private Equity, Private Credit, and Quantitative Finance.

Free GMAT Prep & Personalized GMAT Help

What's inside

Topics

View pricing · Read testimonials