Question

During the current​ year, Tina purchases a beachfront condominium for $ 675 comma 000​, paying $ 130 comma 000 down and taking out a $ 545 comma 000 ​mortgage, secured by the property. At the time of the​ purchase, the outstanding mortgage on her principal residence is $ 680 comma 000. This debt is secured by the residence. The FMV of the principal residence is $ 1 comma 600 comma 000. She purchased the principal residence in 1997.

Requirement

What is the amount of qualified indebtedness on which Tina may deduct the interest​ payments?

The amount of qualified indebtedness on which Tina may deduct the interest payments is

Answer 1

Ans- Mortgage indebtness= $545,000+$680,000=$1,225,000

Or Statue limit $1,000,000 whichever is lesser

=$1,225,000 or $1,000,000

Mortgage indebtness= $1,000,000