Patricia purchased a home on January 1, 2017 for $1,310,000 by making a down payment of $100,000 and financing the remaining $1,210,000 with a 30-year loan, secured by the residence, at 6 percent. During year 2017 and 2018, Patricia made interest-only payments on the loan of $72,600. What amount of the $72,600 interest expense Patricia paid during 2018 may she deduct as an itemized deduction? (Assume not married filing separately.)
Deduction is only available only up to amount $1,000,000
Interest on such amount = $1,000,000 * 6%
=$60,0000
Only $60,000 out of $72,600 is available for deduction.
Patricia purchased a home on January 1, 2017 for $1,310,000 by making a down payment of...
Patricia purchased a home on January 1, 2017 for $1,220,000 by making a down payment of $100,000 and financing the remaining $1,120,000 with a 30-year loan, secured by the residence, at 6 percent. During year 2017 and 2018, Patricia made interest-only payments on the loan of $67,200. What amount of the $67,200 interest expense Patricia paid during 2018 may she deduct as an itemized deduction? (Assume not married filing separately.) Multiple Choice A) $60,000. B) $7,200. C) $0. D) $67,200.
Patricia purchased a home on January 1, 2017 for $1.310.000 by making down payment of $100.000 and financing the remaining $1,210,000 with a loan. secured by the residence. 6 percent. From 2017 through 2019, Patricia made interest-only payments on the loan each year in the amount of $72.600. What amount of the $72,600 interest expense that Patricia paid during 2019 may she deductasan nemized deduction? (Assume not married filing separately.) Multiple Choice O $0. $12,600. $60,000 $72,600.
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