Laura takes out a $2,000,000 mortgage loan in 2020 and uses it to buy her home. It is the only house she owns and the loan is secured by the house. The interest she pays on the loan in 2020 is $12,000. How much of that interest is deductible?

Zero, because the house is her personal residence.

All $12,000, because mortgage interest is deductible.

$6,000.

$4,500.