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In January 2023, a taxpayer takes out a $500,000 mortgage to purchase a main home...

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Accounting

In January 2023, a taxpayer takes out a $500,000 mortgage to purchase a main home with a fair market value of $800,000. In February 2023, the taxpayer takes out a $250,000 home equity loan to put an addition on the main home. Both loans are secured by the main home and the total does not exceed the cost of the home. What percentage of the interest paid on the loans is deductible on the taxpayers income tax return?
A.25%
B.50%
C.75%
D.100%

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