Lebron Taylor purchased a home on July 1, 2019, for $500,000. Lebron paid for the entire purchase price with cash. On January 1, 2020, Lebron needed additional cash for purposes unrelated to his home, so he took out a loan secured by the residence for $150,000. During 2020, he made interest-only payments of $4,500 on the loan. What amount of the $4,500 interest expense can Lebron deduct in 2020?

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The Answer of Lebron Taylor purchased a home on July 1, 2019, for $500,000. Lebron paid for the entire purchase price with cash. On January 1, 2020, Lebron needed additional cash for purposes unrelated to his home, so he took out a loan secured by the residence for $150,000. During 2020, he made interest-only payments of $4,500 on the loan. What amount of the $4,500 interest expense can Lebron deduct in 2020?

Lebron Taylor Purchased a Home on July 1, 2019, for $500,000