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Mr. and Mrs. Kim, married filing jointly, own a principal residence and a vacation home. Each residence is subject to a mortgage that qualifies as
Mr. and Mrs. Kim, married filing jointly, own a principal residence and a vacation home. Each residence is subject to a mortgage that qualifies as acquisition debt, and both mortgages were incurred before December 15, 2017. This year, the mortgage holders provided the following information:
| Mortgage Interest Paid | Average Balance of Mortgage | |
|---|---|---|
| Principal residence | $ 46,000 | $ 973,800 |
| Vacation home | 26,900 | 364,000 |
Required: Assume the taxable year is 2021. Compute Mr. and Mrs. Kims qualified residence interest. (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)
THIS IS A TAX CLASS
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