My name is John Jones and I have twin daughters who are starting college next fall at Northwestern University in Chicago. The original plan was for the girls to live in the dorm. However, the amount the University charges for what they would get is unbelievably high. I just don’t want to pay rent for four years (or more). I’m considering buying a condominium close to Northwestern and having them live there instead of the dorm. I think it would be a good investment and clearly much better than paying rent. I have identified a condo selling for $300,000 that would be terrific. When the girls leave Chicago, I will probably sell the condo. I would need to borrow $240,000 to buy it, and what I want to know is whether I can deduct the interest expense on the loan.

My name is John Jones and I have twin daughters who are starting college next fall at Northwestern University in Chicago. The original plan was for the girls to live in the dorm. However, the amount the University charges for what they would get is unbelievably high. I just don’t want to pay rent for four years (or more). I’m considering buying a condominium close to Northwestern and having them live there instead of the dorm. I think it would be a good investment and clearly much better than paying rent. I have identified a condo selling for $300,000 that would be terrific. When the girls leave Chicago, I will probably sell the condo. I would need to borrow $240,000 to buy it, and what I want to know is whether I can deduct the interest expense on the loan.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter1: Federal Income Taxation—an Overview

Section: Chapter Questions

Problem 60P: Michiko and Saul are planning to attend the same university next year. The university estimates...

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