What is the maximum amount Stella can claim as a Mortgage Interest Deduction if she paid $60,000 in mortgage interest in 2023?

The correct amount that Stella can claim as a Mortgage Interest Deduction is based on the mortgage interest she actually paid during the tax year. In this case, because Stella paid $60,000 in mortgage interest in 2023, she can claim the full amount of $60,000 as a deduction on her tax return.

For tax purposes, there are certain limits and eligibility requirements regarding mortgage interest deductions, particularly related to the amount of mortgage debt and the date the mortgage was taken out, but in this scenario, since she paid $60,000 and it falls within what is typically allowable, she is able to deduct the entire amount.

Understanding the nuances of mortgage interest deductions can help taxpayers maximize their potential tax benefits while ensuring compliance with IRS rules.