In year 1, Kris purchased a new home for $600,000 by making a down payment of $450,000 and financing the remaining $150,000 with a loan, secured by the residence, at 5 percent. As of January 1, year 4, the outstanding balance on the loan was $120,000. On January 1, year 4, when his home was worth $660,000, Kris refinanced the home by taking out a $380,000 mortgage at 5 percent. With the loan proceeds, he paid off the $120,000 balance of the existing mortgage and used the remainder for purposes unrelated to the home. During year 4, he made interest only payments on the new loan of $19,000. What amount of the $19,000 interest expense on the new loan can Kris deduct in year 4 on the new mortgage as home related interest expense?

AND ITS NOT 19000