Lebron Taylor purchased a home on July 1, 2018 for $500,000. Lebron paid for the entire purchase price with cash. On January 1, 2019, Lebron needed additional cash for purposes unrelated to his home so he took out a loan secured by the residence for $150,000. During 2019, he made interest only payments of $4,500 on the loan. What amount of the $4,500 interest expense can Lebron deduct in 2019?

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The Answer of Lebron Taylor purchased a home on July 1, 2018 for $500,000. Lebron paid for the entire purchase price with cash. On January 1, 2019, Lebron needed additional cash for purposes unrelated to his home so he took out a loan secured by the residence for $150,000. During 2019, he made interest only payments of $4,500 on the loan. What amount of the $4,500 interest expense can Lebron deduct in 2019?

Lebron Taylor Purchased a Home on July 1, 2018 for $500,000