Patricia purchased a home on January 1,2013 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 2013,Patricia made interest-only payments on the loan of $66,000.What amount of the $66,000 interest expense Patricia paid during 2013 may she deduct as an itemized deduction?

Question

Quizplus · Accepted Answer

The interest paid on a mortgage for a primary residence is generally deductible as an itemized deduction. Since Patricia paid $66,000 in interest, she can deduct the full amount.

Patricia Purchased a Home on January 1,2013 for $1,200,000 by Making