Your clients, John and Sue Highroller, purchased a $5.0 million home on January 2, 2016. The home was used as their principal residence during the year. The Highroller’s purchased the home by making a down payment of $1.7 million and taking out a $3.3 million mortgage secured by their principal residence. During 2016, they paid $132,000 in mortgage interest. The mortgage did not include any points or other origination fees. The Highroller’s are married and will file using the Married Filing Joint status.
Question: Calculate the amount of home mortgage interest the Highrollers can deduct as an itemized deduction on their 2016 form 1040.