1. In January of this year, Joyce and Jane, who are married, purchased a one-bedroom condo in Manhattan for $1 million, paying $400,000 in cash and borrowing $600,000, secured by a mortgage on the condo. They pay $24,000 in interest on this loan this year. On April 1, they purchased a second, small cottage in the Hamptons (on Long Island) for $500,000, paying $350,000 in cash and borrowing $150,000, secured by a mortgage on the home. They pay $6,000 in interest on this loan this year. How much of the aggregate $30,000 interest paid on their Manhattan condo loan and Hamptons cottage loan can they deduct this year under 163(h)(3)?