Which of the following statements regarding the home mortgage interest expense deduction is correct?
A)The limit on acquisition indebtedness depends on filing status.
B)The limit on acquisition indebtedness applies to one (not multiple)loans.
C)The limit on acquisition indebtedness applies only in the year of acquisition.
D)Taxpayers who do not itemize deductions can still deduct home mortgage interest as a from AGI deduction.

Question

Quizplus · Accepted Answer

The limit on acquisition indebtedness is dependent on the taxpayer's filing status. For single filers, the limit is $750,000, and for married filing jointly, the limit is $1,500,000. Choice B is incorrect because the limit applies to all loans used to purchase or improve a primary residence. Choice C is incorrect because the limit applies throughout the life of the loan, not just in the year of acquisition. Choice D is incorrect because taxpayers who do not itemize cannot deduct home mortgage interest.

Which of the Following Statements Regarding the Home Mortgage Interest