13. Explain what a qualified residence is for purposes of qualified residence interest.

A. For any taxable year, a taxpayer may have a maximum of three qualified residences: the taxpayer's principal residence, and two other residences selected by the taxpayer which the taxpayer personally uses more than the greater of: 14 days or 10% of the rental days during the year. Qualified residence interest may be deducted for all qualified residences.

B. For any taxable year, a taxpayer may have two qualified residences: the taxpayer's principal residence, and one other residence selected by the taxpayer which the taxpayer personally uses more than the greater of 14 days or 10% of the rental days during the year. If the residence has not been rented by the taxpayer during the year, it may be selected by the taxpayer as the second residence with respect to which qualified residence interest may be deducted even though the taxpayer does not meet the 14-day or 10% test.

C. The taxpayer's principal residence is the only qualified resident whose interest is deductible on Schedule A.

D. A qualified residence is the taxpayer's principal residence that has been occupied by the taxpayer for a minimum of five consecutive years. Qualified residence interest may only be deducted after the five year period.