For regular income tax purposes, qualified residence interest is deductible as an itemized deduction in computing taxable income.

Qualified residence interest is interest that's paid or accrued during the tax year on acquisition indebtedness (debt incurred to buy, construct or substantially improve a residence) or on home equity indebtedness (up to $100,000 [$50,000 on separate returns of married taxpayers]) that's incurred with respect to any qualified residence of the taxpayer.

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