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In Year 1 (post 2018), Julie purchased a home to be used as her principal residence for $900,000, using $250,000 of savings and borrowing $650,000, secured by the residence. The loan is an interest-only loan until Year 10. In Year 2 Julie purchased a vacation beach house in Hilton Head, South Carolina, for $200,000, using 50,000 of savings and borrowing $150,000, secured by the residence. In Year 3 , Julie paid $35,000 of interest on the mortgage on her home and $7,500 of interest on the mortgage on her vacation home. In Year 3 , she also paid $10,000 of property taxes on her residence and $2,500 of property taxes on her vacation home. She paid no state income tax. Her principal residence is worth $1 million and her vacation home is worth $275,000. Which of the following statements, in (a) through (d) below, is false? a) In Year 3, Julie can deduct all of the $35,000 of interest she paid on the mortgage on her principal residence. b) In 2017, TCJA amended $163 to disallow deductions for interest on home equity indebtedness. c) In Year 3, Julie can deduct $5,000 of the $7,500 of interest she paid on the mortgage on her vacation home. d) In Year 3, Julie can deduct $10,000 of the $12,500 of property taxes she paid on her two homes. e) None of the statements in (a) through (d) is false

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