Subject to Net Equity and Dollar Limitations,a Taxpayer May Deduct

question 33

True/False

Subject to net equity and dollar limitations,a taxpayer may deduct interest on a home equity loan,secured by the residence,used to purchase an automobile.

---

Definitions:

External Benefit

A positive effect experienced by a third party who did not choose to incur that benefit, often associated with public goods or services.

Social Value

The importance or benefits a project, policy, or action brings to the community or society at large, beyond just economic gains.

Private Cost

The cost incurred by an individual or company in producing goods or services, excluding externalities.

Private Value

The value of a good or service to an individual buyer or seller which is independent of the market price or the value others might derive from it.