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1. Abbie and Avery are married. They own 3 houses. They use one as their...

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1. Abbie and Avery are married. They own 3 houses. They use one as their primary residence and use the other two as vacation homes. Each house a mortgage. The mortgage on their primary residence has a balance of $600,000, the two vacation homes have mortgages of $300,000 and $400,000 respectively. The interest rate on each mortgage is 5%. The interest expense on the mortgages are 1- principal residence 30,000, 2-vacation home 1 - 15,000, and vacation home 2 - 20,000? In addition, they invest in the stock market and have borrowed $100,000 to invest in securities. They pay their broker $5,000 in interest expense for the year. During the year they earn $4,000 of qualified dividend income, $2,000 of short-term capital gains and $5,000 of long-term capital gains. How much interest expense will they be able to deduct on their tax return for the year based on these loans? Show your computation

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