Question

Richie rominey purchases a new $4.3 million qualified principal residence in palo alto, ca using a mortgage loan of $3 million. richie's mortgage interest deduction may be limited.

a. True

b. False

Answer 1

that statement is true
the debt that secured through your principal residence that is used to refinance qualified principal residence indebtedness is treated as qualified principal residence indebtedness. The interest deduction is limited because , the refinance that are allowed for exclusion only takes up to the amount of the old mortgage principal