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.

Question

Silas Lyons

Business

27 April, 11:21

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.

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Farley · 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.

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.