Business, 10.01.2020 06:31 peteh5

Patrick purchased a home on january 1, year 2018 for $600,000 by making a down payment of $100,000 and financing the remaining $500,000 with a 30-year loan, secured by the residence, at 6 percent. during 2018, patrick made interest-only payments on the loan of $30,000. on july 1, 2018, when his home was worth $600,000 patrick borrowed an additional $75,000 secured by the home at an interest rate of 8 percent. during 2018, he made interest-only payments on this loan in the amount of $3,000. what amount of the $33,000 interest expense patrick paid during 2018 may he deduct as an itemized deduction if he used the $75,000 from the july 1 loan to purchase a car?

a.) $0
b.) $3,000
c.) $30,000
d.) $33,000

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Patrick purchased a home on january 1, year 2018 for $600,000 by making a down payment of $100,000 a...