A taxpayer takes out a loan secured by property used in his or her business but uses the loan proceeds to buy a car for personal use. Under the tracing rules, the taxpayer must allocate interest expense on the loan to personal use (purchase of the car) even though the loan is secured by business property. Therefore, what amount of the interest paid on the loan is deductible on the taxpayer income tax return? 

A. 10% 

B. 50% 

C. 100% 

D. The interest is not deductible