Patrick purchased a home on January 1, year 1 for $600,000 by making a down payment of $100,000 and financing the remaining $500,000 with a 30-year loan, secured by the residence, at 6 percent. During year 1, Patrick made interest-only payments on the loan totaling $30,000. On July 1, year 1, when his home was worth $600,000 Patrick borrowed an additional $75,000 secured by the home at an interest rate of 8 percent. During year 1, he made interest-only payments on this loan in the amount of $3,000. What amount of the $33,000 interest expense Patrick paid during year 1 may he deduct as an itemized deduction if he used $25,000 of the loan proceeds to enlarge his garage and the remaining $50,000 as used to buy stock?

		0
		$3,000
		$30,000
		$31,000