Question: During the current year, Trisha purchases a breach front condominium for $550,000, paying $80,000 down and taking out a $470,000 mortgage, secured by the property.

During the current year, Trisha purchases a breach front condominium for $550,000, paying $80,000 down and taking out a $470,000 mortgage, secured by the property. At the time of the purchase , the outstanding mortgage on her principal residence is $700,000. This debt is secured by the residence and the FMV of the principal residence is $1,100,000. She purchased the principal residence in 1997. Requirement What is the amount of qualified indebtedness on which Trisha may deduct the interest payments?

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