Borrowing costs of $5,000 were paid on 1 January 2020 for a loan that was established to purchase a principal place of residence and a rental property of equal value. The term of the loan was for 6 years. Which of the following would be considered most accurate in relation to the amount of borrowing costs that would be considered deductible in the 2020 tax year?

Select one:

None of these

$5,000

$250

$2,500

$500