Lebron Taylor purchased a home on July 1, 2013 for $500,000. Lebron paid for the entire purchase price with cash. In July of 2013, Lebron needed additional cash for purposes unrelated to his home so he took out a home equity loan for $150,000. During 2014, he made interest only payments of $4,500 on the loan. What amount of the $4,500 interest expense can Lebron deduct in 2014?

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The Answer of Lebron Taylor purchased a home on July 1, 2013 for $500,000. Lebron paid for the entire purchase price with cash. In July of 2013, Lebron needed additional cash for purposes unrelated to his home so he took out a home equity loan for $150,000. During 2014, he made interest only payments of $4,500 on the loan. What amount of the $4,500 interest expense can Lebron deduct in 2014?

Lebron Taylor Purchased a Home on July 1, 2013 for $500,000