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miller owns a personal residence with a fair market value of $363,350 and an outstanding first mortgage of $290,680, which was used entirely to acquire the residence. this year, miller gets a home equity loan of $18,168 to purchase a new fishing boat for personal use. how much of this mortgage debt is treated as qualified residence indebtedness?

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marvineetesh3

The $290,680 mortgage debt is treated as qualified residence indebtedness.

What is included in Qualified principal residence debts?

Qualified principal residence debts, according to the IRS, may include:

Debt incurred to build, purchase, or upgrade your primary residence, and secured by the house or principal residence (mortgage). Or,

Any house debt in (1) that is refinanced in order to upgrade, create, or purchase something for your house or primary residence, such as refinancing your mortgage to build a swimming pool.

This also stated that the loan balance cannot be greater than the initial mortgage sum, because a fishing boat is not considered a home improvement, the equity loan is not qualified residence debt.

Therefore, its $290,680.

Learn more about the mortgage, refer to:

https://brainly.com/question/28123297

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