Miller owns a personal residence with a fair market value of $317,450 and an outstanding first mortgage of $253,960, which was used entirely to acquire the residence. This year, Miller gets a home equity loan of $15,873 to purchase new jet skis. How much of this mortgage debt is treated as qualified residence indebtedness?

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter12: Alternative Minimum Tax
Section: Chapter Questions
Problem 42P
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Miller owns a personal residence with a fair market value of $317,450 and an outstanding first mortgage of $253,960, which was used entirely to acquire the residence. This year, Miller gets a home equity loan of $15,873 to purchase new jet skis.

How much of this mortgage debt is treated as qualified residence indebtedness?

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