Diane owns a principal residence in Georgia, a townhouse in San Francisco, and a yacht in Cape Cod. All of the properties have mortgages on which Diane pays interest. a. For which residences can Diane deduct mortgage interest? Principal residence plus one of the two other residences Feedback Check My Work b. What are the limitations on Diane's mortgage interest deduction? What strategy should Diane consider to maximize her mortgage interest deduction? Diane's deduction is limited to interest on acquisition indebtedness up to $ interest deduction. if the debt existed at December 15, 2017 or if incurred after that date. Therefore, she should choose the second residence that will result in the highest