During 2017,Manuel and Gloria,who are not married and live in Beverly Hills,incurred acquisition debt on their new residence of $2,150,000.On their individual tax returns,what is the amount of qualified acquisition debt on which they can each deduct interest?

A) $900,000.
B) $1,000,000.
C) $1,050,000.
D) $1,150,000.

According to IRS Publication 936, for tax years after December 15, 2017, the limit on the amount of mortgage debt on which interest is deductible has been reduced to $750,000 for married taxpayers filing jointly and $375,000 for married taxpayers filing separately and for single filers. Since Manuel and Gloria are not married, they are considered single filers and can each deduct interest on up to $1,000,000 of qualified acquisition debt.