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MrAnd MrsPerry Own Three Homes,each of Which Is Subject to a a Mortgage

Question 72

Multiple Choice

Mr.and Mrs.Perry own three homes,each of which is subject to a mortgage incurred to purchase the home.The mortgage on their principal residence is $290,000,the mortgage on the second home is $100,000,and the mortgage on the third home is $317,000.Which of the following statements is true?


A) Mr.and Mrs.Perry are allowed an itemized deduction for the interest paid on all three mortgages.
B) The Perrys' itemized deduction is limited to the interest on the $290,000 mortgage.
C) The Perrys' itemized deduction is limited to the interest on the $317,000 mortgage.
D) None of the statements is true.

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