In the current year, the taxpayer paid $5,000 in mortgage interest on a primary residence, $1,500 mortgage interest on a vacation home, and $2,000 in loan interest on a recreational vehicle with sleeping, cooking, and toilet facilities. What is the taxpayer's maximum mortgage interest deduction?
(4 Points)
A. $0
B. $5,000
C. $7,000
D. $8,500
The taxpayer's maximum mortgage interest deduction is $7,000.
This is because the maximum amount of mortgage interest that can be deducted is $750,000 for mortgages taken out after December 15, 2017.
The taxpayer paid $5,000 in mortgage interest on their primary residence and another $2,000 in loan interest on a recreational vehicle with sleeping, cooking, and toilet facilities.
Therefore, the total mortgage interest deduction is $5,000 + $2,000 = $7,000.
The correct answer is C. $7,000.