David Dental, DDS and his inmarried partner, Sally Surgeon, MD, have lived together for the past five years. Both are the peak of their careers and decide to buy a new shoecase home in La Jolla, California. After looking at several homes in the area, they buy one for $2 million. They put 20 percent down payment ($400000) on the house and finance the balance ($1.6 million). Each takes out a separate mortgage for $800,000 for a total $1.6 million. There is no other debt on the residence.

Make a tax research memo in word document with list of sources.