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Alexis bought a home for $1,000,000 during year 1. She made a $200,000 down payment...

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Accounting

Alexis bought a home for $1,000,000 during year 1. She made a $200,000 down payment and financed the other $800,000. This home is her only residence. Assume that by year 10 her home had appreciated to $1,500,000 and the balance on her mortgage was down to $600,000, interest rates had gone down and Alexis refinanced her home. She borrowed $1,000,000 and paid off her first portgage. She used the remaining $400,000 for projects unrelated to her home. How much is her qualifying home-related debt for tax purposes?

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