Essay
Melvin owns his home and has a $200,000 mortgage related to his purchase of the residence.In the fall of the current year,he borrows $40,000 on credit cards for college costs for his two sons.The interest expense on the mortgage is $15,000 and the interest expense on the credit cards is $6,000.How much of the interest is deductible as an itemized deduction and why? If you were Melvin's accountant,what tax planning suggestion might you have made to him?
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