Question: During the current year, Tory purchases a beachfront condominium for $650,000 paying $150,000 down and taking out a $500,000 mortgage, secured by the property. At

During the current year, Tory purchases a beachfront condominium for $650,000 paying $150,000 down and taking out a $500,000 mortgage, secured by the property. At the time of the purchase, the outstanding mortgage on her principal residence is $675,000. This debt is secured by the residence. The FMV of the principal residence is $1,500,000. She purchased the principal residence in 1997 Requirement What is the amount of qualified indebtedness on which Tory may deduct the interest payments? The amount of qualified indebtedness on which Tory may deduct the interest payments is

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