George recently received a great stock tip from his friend, Mason. George didnt have any cash on hand to invest, so he decided to take out a $21,000 loan to facilitate the stock acquisition. The loan terms are 8 percent interest with interest-only payments due each year for five years. At the end of the five-year period the entire loan principal is due. When George closed on the loan on April 1, 2021, he decided to invest $12,600 in stock and to use the remaining $8,400 to purchase a four-wheel recreation vehicle. George is unsure how he will treat the interest paid on the $21,000 loan. In 2021, George paid $1,260 interest expense on the loan. (Hint: Visit https://www.irs.gov/ and consider IRS Publication 550.)

What amount may he deduct as interest in 2021? Deductible Interest ___________________?

George recently received a great stock tip from his friend. Mason. George didn't have any cash on hand to invest, so he decided to take out a $21,000 loan to facilitate the stock acquisition. The loan terms are 8 percent interest with interest-only payments due each year for five years. At the end of the five-year period the entire loan principal is due. When George closed on the loan on April 1, 2021, he decided to invest $12,600 in stock and to use the remaining $8.400 to purchase a four-wheel recreation vehicle. George is unsure how he will treat the interest paid on the $21,000 loan. In 2021. George paid $1.260 interest expense on the loan. (Hint. Visit and consider IRS Publication 550.) What amount may he deduct as interest in 2021? George recently received a great stock tip from his friend. Mason. George didn't have any cash on hand to invest, so he decided to take out a $21,000 loan to facilitate the stock acquisition. The loan terms are 8 percent interest with interest-only payments due each year for five years. At the end of the five-year period the entire loan principal is due. When George closed on the loan on April 1, 2021, he decided to invest $12,600 in stock and to use the remaining $8.400 to purchase a four-wheel recreation vehicle. George is unsure how he will treat the interest paid on the $21,000 loan. In 2021. George paid $1.260 interest expense on the loan. (Hint. Visit and consider IRS Publication 550.) What amount may he deduct as interest in 2021