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Patrick purchased a home on January 1,2024, for $600,000 by making a down payment of...

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Accounting

Patrick purchased a home on January 1,2024, 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 2024, Patrick made interest-only payments on the loan of $30,000. On July 1,2024, when his home was worth $600,000, Patrick borrowed an additional $75,000 secured by the home at an interest rate of 8 percent. He used the $75,000 loan proceeds to purchase a new car. During 2024, he made interest-only payments on this loan in the amount of $3,000. What amount of the $33,000 interest expense that Patrick paid during 2024 may he deduct as an itemized deduction?

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