MrAnd MrsPerry Own Three Homes,each of Which Is Subject to a a Mortgage

question 38

Multiple Choice

Mr.and Mrs.Perry own three homes,each of which is subject to a mortgage incurred to purchase the home.The mortgage on their principal residence is $290,000,the mortgage on the second home is $100,000,and the mortgage on the third home is $317,000.Which of the following statements is true?

• A)Mr.and Mrs.Perry are allowed an itemized deduction for the interest paid on all three mortgages.
• B)The Perrys' itemized deduction is limited to the interest on the $290,000 mortgage.
• C)The Perrys' itemized deduction is limited to the interest on the $317,000 mortgage.
• D)None of the statements is true.

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