Patricia purchased a home on January 1, 2017, for $1,240,000 by making a down payment of $100,000 and financing the remaining $1,140,000 with a loan, secured by the residence, at 6 percent. From 2017 through 2019, Patricia made interest-only payments on the loan each year in the amount of $68,400. What amount of the $68,400 interest expense that Patricia paid during 2019 may she deduct as an itemized deduction? (Assume not married filing separately.)

Multiple Choice

• $0.

• $8,400.

• $60,000.

• $68,400.