Patricia Purchased a Home on January 1, 2017, for $1,200,000

question 116

Multiple Choice

Patricia purchased a home on January 1, 2017, for $1,200,000 by making a down payment of $100,000 and financing the remaining $1,100,000 with a loan, secured by the residence, at 6 percent. From 2017 through 2020, Patricia made interest-only payments on the loaneach year in the amount of $66,000. What amount of the $66,000 interest expensethat Patricia paid during 2020 may she deduct as an itemized deduction? (Assume not married filing separately.)

• A)$0.
• B)$6,000.
• C)$60,000.
• D)$66,000.

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Definitions:

Sympathetic

Pertaining to the part of the autonomic nervous system that prepares the body for stress by accelerating the heart rate, among other responses.

Sympathetic Impulses

Nerve impulses transmitted by the sympathetic nervous system, part of the autonomic nervous system that controls the body's responses to stress or emergency situations.

Angry

A strong emotional state or reaction characterized by annoyance, displeasure, or hostility.

Relaxed

A state of physical or mental ease, often free from tension and anxiety.