Limitations
The aggregate amounts treated as acquisition indebtedness for any period cannot exceed $1,000,000. The amount for home equity indebtedness cannot exceed $100,000. Qualified residence interest is also subject to limitations imposed by § 263(g) - certain interest in the case of straddles, § 264(a)(2) and (4) - interest paid in connection with certain insurance, § 265(a)(2) - interest relating to tax-exempt income, § 266 - carrying charges, § 267(a)(2) - interest with respect to transactions between related taxpayers, § 465 - deductions limited by the amount at risk, § 1277 - deferral of interest deduction allocable to accrued market discount, and § 1282 - deferral of interest deduction allocable to accrued discount.
Read more about this topic: Qualified Residence Interest
Famous quotes containing the word limitations:
“To note an artist’s limitations is but to define his talent. A reporter can write equally well about everything that is presented to his view, but a creative writer can do his best only with what lies within the range and character of his deepest sympathies.”
—Willa Cather (1876–1947)
“Much of what contrives to create critical moments in parenting stems from a fundamental misunderstanding as to what the child is capable of at any given age. If a parent misjudges a child’s limitations as well as his own abilities, the potential exists for unreasonable expectations, frustration, disappointment and an unrealistic belief that what the child really needs is to be punished.”
—Lawrence Balter (20th century)
“That all may be so, but when I begin to exercise that power I am not conscious of the power, but only of the limitations imposed on me.”
—William Howard Taft (1857–1930)