1) Ethan (single) purchased his home on July 1, 2009. He lived in the home as his principal residence until July 1, 2016, when he moved out of the home, and rented it out until July 1, 2018, when he moved back into the home. On July 1, 2019, he sold the home and realized a $181,000 gain. What amount of the gain is Ethan allowed to exclude from his gross income?

2) Patricia purchased a home on January 1, 2017, for $1,280,000 by making a down payment of $100,000 and financing the remaining $1,180,000 with a loan, secured by the residence, at 6 percent. From 2017 through 2019, Patricia made interest-only payments on the loan each year in the amount of $70,800. What amount of the $70,800 interest expense that Patricia paid during 2019 may she deduct as an itemized deduction? (Assume not married filing separately.)