Which of the Following Types of Interest Is Not Deductible

question 111

Multiple Choice

Which of the following types of interest is not deductible in 2013?

• A)Qualified mortgage interest on residence
• B)Qualified mortgage interest on second residence
• C)Credit card interest
• D)All of the above
• E)None of the above

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Definitions:

Deposit Today

An amount of money placed into a financial account or investment at the present time.

Cash

Liquid assets that can be used immediately for transactions, including currency and bank balances.

Compound Interest

Interest computed not only on the original amount invested or loaned but also on the interest that has been added to this principal over past periods.

Simple Interest

Interest computed solely on the initial sum, without accumulation through compounding.