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John has a 60% possession curiosity within the home, and George has a 40% ownership interest in the home. John paid $5,four hundred mortgage curiosity this yr and George paid $3,600. If two or extra individuals maintain an interest in the home to which the MCC relates, the credit score have to be divided primarily based on the curiosity held by each person. If the certificates credit score price is higher than 20%, the credit you’re allowed cannot be greater than $2,000. In each later year, she goes to determine her credit utilizing solely 80% of the interest she pays for that year. The fraction won’t change as long as you’re entitled to take the mortgage interest credit.

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