Amends section 221 of the Internal Revenue Code: replaces the text of subsection (b)(1) to read that the interest taken into account with respect to a taxpayer for a taxable year under subsection (a) for indebtedness incurred by an individual shall not exceed $2,500; strikes and replaces the heading of subsection (b); and replaces subsection (e) with a denial-of-double-benefit rule prohibiting a deduction under this section for amounts deductible under any other provision of the chapter.