During 2015, Manuel and Gloria incurred acquisition debt on their new residence of $1,150,000. On their joint tax return, what is the amount of their qualified acquisition debt on which they can deduct interest?

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The maximum amount of qualified acquisition debt for which interest can be deducted is $1,000,000 for mortgages taken out after December 15, 2017, and before December 16, 2017. Since Manuel and Gloria took out their mortgage in 2015, this maximum limit applies to them. Therefore, they can only deduct interest on the first $1,000,000 of their acquisition debt, resulting in a qualified acquisition debt of $1,000,000.

During 2015, Manuel and Gloria Incurred Acquisition Debt on Their