What amount of the interest expense patricia paid

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Problem 1: Patricia purchased a home on January 1, 2017 for $1,400,000 by making a down payment of $100,000 and financing the remaining $1,300,000 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 $78,000. What amount of the $78,000 interest expense Patricia paid during 2018 may she deduct as an itemized deduction? (Assume not married filing separately.)

Option 1: $0.
Option 2: $18,000.
Option 3: $60,000.
Option 4: $78,000.

Reference no: EM132990300

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