Question

For regular tax purposes, with regard to the itemized deduction for qualified residence interest, home equity indebtedness incurred during a year:

a. Includes acquisition indebtedness secured by a qualified residence.
b. May exceed the fair market value of the residence.
c. Must exceed the taxpayer's net equity in the residence.
d. Is limited to $100,000 on a joint income tax return.

Answer 1

For regular tax purposes, with regard to the itemized deduction for qualified residence interest, home equity indebtedness incurred during a year: Is limited to $100,000 on a joint income tax return.

Step-by-step explanation:

The debt of household property is entitled to a joint return of $100,000. Home equity debt is any mortgage not obtained by a qualifying property.

The reasonable market value of the home shall not be greater than that of the purchase loan or the lesser amount of $100,000.

The debt to purchase, create, and substantially improve a qualifying residence is the debt owed in the purchasing, construction and securing of such house (a 1 million dollars limited).

The certain value on debt that outperforms these limits can not be subtracted.