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