Amanda purchased a home for $1,000,000 in 2002 She paid $200,000 cash and borrowed the remaining $800,000. This is Amanda's only residence. Assume that in 2015 when the home had appreciated to $1,500,000 and the remaining mortgage was $600,000, interest rates declined and Amanda refinanced her home. She borrowed $1,000,000 at the time of the refinancing. What is her total amount of qualifying home-related debt for tax purposes?

Amanda purchased a home for $1,000,000 in 2002 She paid $200,000 cash and borrowed the remaining $800,000. This is Amanda's only residence. Assume that in 2015 when the home had appreciated to $1,500,000 and the remaining mortgage was $600,000, interest rates declined and Amanda refinanced her home. She borrowed $1,000,000 at the time of the refinancing. What is her total amount of qualifying home-related debt for tax purposes?

Amanda purchased a home for $1,000,000 in 2002 She paid $200,000 cash and borrowed the remaining $800,000. This is Amanda's only residence. Assume that in 2015 when the home had appreciated to $1,500,000 and the remaining mortgage was $600,000, interest rates declined and Amanda refinanced her home. She borrowed $1,000,000 at the time of the refinancing. What is her total amount of qualifying home-related debt for tax purposes?


A. $600,000

B. $700,000

C. $1,000,000

D. $1,100,000


Answer: B


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