1. Steve and Mary purchase a new condominium in Manhattan on Feb 1, 2020 to use as their primary residence. The purchase price of the condominium is $1.5 million. The couple obtained a $650,000 mortgage from the bank and paid the balance in cash. On their joint tax return the couple will be allowed an itemized deduction for interest expense on a principal balance of up to:

   	A.	$650,000
   	B.	$1.5 million
   	C.	$1 million
   	D.	$750,000

2. The following taxes are deductible as itemized deductions with the exception of:

   	A.	State income taxes
   	B.	Social security taxes
   	C.	Foreign real property taxes
   	D.	Local personal property taxes