Question $35(1$ point$)$

Kyte purchased a large lot on a lake in anticipation of bulding his home there wittin $3$ years. In the current year, Kyle paid $$650$ in property taxes and $$2,500$ of interest on the demand loan he obtained to purchase the lot. Jorwary to March he rented out the lot to atocat incownoblic club for $$1,500.$ The amount charged is chosen to allow Kyle to recover some of this costs. Which of the following statements is correct?

Kye can deduct the $$450$ of property taxes paid and $$850$ of the interest paid

$$ Kye cannot deduct any of the property faxes of inferest paid for the vacant lot

Kyle can deduct the $$650$ of property faxes pald, but none of the interest paid