Two years ago, Jack Peters borrowed $150,000 from the First National Bank which he used to buy equipment used in his business. Business slowed considerably this year, and Jack was unable to make payments on the loan. To keep the bank from foreclosing on the note, Jack's father made several payments on the loan during the year. Of the total payments he made on the loan, $10,000 was attributable to interest and the remainder was applied to reduce the principal balance.

Can Jack's father deduct the $10,000 in interest expense he paid on Jack's loan? Explain.