michaela owns a principal residence in georgia, a townhouse in san francisco, and a yacht in cape cod. all of the properties have mortgages on which michaela pays interest. question content area a. for which residences can michaela deduct mortgage interest? only the principal residence in georgia question content area b. what are the limitations on michaela's mortgage interest deduction? what strategy should michaela consider to maximize her mortgage interest deduction? michaela's deduction is limited to interest on acquisition indebtedness up to $fill in the blank 0b8f7ffe103d02d 1 if the debt existed at december 15, 2017 or $fill in the blank 0b8f7ffe103d02d 2 if incurred after that date. therefore, she should choose the second residence that will result in the interest deduction.