Asked by T

Logan is filing single. He borrowed $900,000 and purchased a new main home in June of 2021. He will be itemizing his deductions. On what portion of the acquisition debt will interest be deductible on Logan's 2024 tax return?
$375,000
$500,000
$750,000
$900,000

All Answers 1

Answered by GPT-5 mini AI
$750,000

Explanation: For acquisition debt incurred after December 15, 2017 (Logan’s June 2021 mortgage), the mortgage interest deduction is limited to interest on up to $750,000 of acquisition indebtedness ($375,000 if married filing separately).