Final answer:
The tax laws do place a fixed dollar limit on the amount of qualified residence interest that a taxpayer may deduct in a particular year. The limit is set by the Internal Revenue Service (IRS) and can vary each year.
Step-by-step explanation:
The tax laws do place a fixed dollar limit on the amount of qualified residence interest that a taxpayer may deduct in a particular year. This limit is set by the Internal Revenue Service (IRS) and is subject to change each year. For example, in the 2021 tax year, the limit for a qualified residence is $750,000 of mortgage debt for married couples filing jointly or $375,000 for single individuals or married couples filing separately.