Which of the following statements is false?

A.Compliance with the tracing rules is not required for acquisition indebtedness if the expenditures to acquire the residence were made within ninety days either before or after the date the debt is incurred.

B.A single home mortgage debt can be both acquisition debt and home equity debt at the same time.

C.The aggregate amount of home equity indebtedness for which a taxpayermay deduct interest is limited to $1,000,000 ($500,000 for a married couple filing separate tax returns).

D.If a taxpayer refinances qualified acquisition indebtedness with a new mortgage loan and the proceeds of the new loan are traceable to pay-off the old home mortgage, the interest thereon will be deductible asqualifiedresidence interest.