Prepare a tax research memo for Amy and Tom, discussing the tax issues at hand and the conclusion(s) reached. Your analysis should cite relevant primary authority including the Internal Revenue Code and any administrative and/or judicial authority that supports your conclusion(s).

Amy Jones and Tom White recently purchased their dream home, an oceanfront retreat costing $1.8M in February 2021. They put down $300,000 and financed the remainder with a traditional 30-year home mortgage at an interest rate of 2.75%. Amy and Tom are curious as to how this will impact their taxes since they have heard about the tax benefits of home ownership. Their anticipated property taxes are approximately $18,000 per year. Mortgage interest is expected to be about $34,000 this year and $40,000 next year. They will share in all expenses equally. Although they are currently not married, they are engaged and planning a wedding on the beach outside their new home on New Years Eve 2022.