During 2017,Manuel and Gloria,who are not married and live in Beverly Hills,incurred acquisition debt on their new residence of $2,150,000.On their individual tax returns,what is the amount of qualified acquisition debt on which they can each deduct interest?
A)$900,000.
B)$1,000,000.
C)$1,050,000.
D)$1,150,000.

Question

Quizplus · Accepted Answer

According to IRS Publication 936, for tax years after December 15, 2017, the limit on the amount of mortgage debt on which interest is deductible has been reduced to $750,000 for married taxpayers filing jointly and $375,000 for married taxpayers filing separately and for single filers. Since Manuel and Gloria are not married, they are considered single filers and can each deduct interest on up to $1,000,000 of qualified acquisition debt.

During 2017,Manuel and Gloria,who Are Not Married and Live in Beverly