What is the maximum amount of home equity indebtedness on which interest is fully deductible?
A)$0.
B)$50,000.
C)$100,000.
D)$200,000.

Question

Quizplus · Accepted Answer

According to the IRS, the maximum amount of home equity indebtedness on which interest is fully deductible is $100,000. This means that if your home equity debt exceeds $100,000, only a portion of the interest may be deductible. Option A is incorrect because there is still a limit on the amount of home mortgage interest that can be deducted. Option B is incorrect because it refers to the old limit, which was reduced to $100,000. Option D is incorrect because it is not a valid limit set by the IRS.

What Is the Maximum Amount of Home Equity Indebtedness on Which