jenue and akela, married taxpayers, took out a mortgage on their home for $350,000 in 1997. in may of this year, when the home had a fair market value of $450,000 and they owed $250,000 on the mortgage, they took out a home equity loan for $75,000. they used the funds to put an addition on the home. they paid interest of $5,600 on the mortgage, $2,000 on the home equity loan, and $1,000 interest on credit cards. how much of the interest is deductible?
