Which of the Following Is Not Deductible as Interest Expense

question 115

Multiple Choice

Which of the following is not deductible as interest expense on Schedule A?

• A)Loan fee charged for appraisal service
• B)Home mortgage interest
• C)Mortgage interest on a second residence
• D)Home mortgage prepayment penalties
• E)All of the above are deductible as interest expense

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Definitions:

Capital Account

An account showing the net worth of a business at a specific point, accounting for assets minus liabilities.

Statement of Owner's Equity

A financial document that summarizes the changes in the equity of a company over a period, including investments, withdrawals, and the net income or loss.

Income Statement

A financial report summarizing the revenues, costs, and expenses incurred during a specific period, typically a fiscal quarter or year.

Revenues

Revenue earned by a company primarily through its sales of products and services to buyers, as part of its regular operations.