Patricia purchased a home on January 1, 2014 for $1,200,000 by making a down payment of $100,000 and financing the remaining $1,100,000 with a 30-year loan, secured by the residence, at 6 percent. During 2014, Patricia made interest-only payments on the loan of $66,000. What amount of the $66,000 interest expense Patricia paid during 2014 may she deduct as an itemized deduction?

Question

Quizplus · Accepted Answer

Patricia can deduct the full $66,000 as mortgage interest on her primary residence, as it is within the limits for mortgage interest deduction.

Patricia Purchased a Home on January 1, 2014 for $1,200,000