Which of the Following Interest Expense Amounts Is Not Deductible

question 94

Multiple Choice

Which of the following interest expense amounts is not deductible in 2019?

• A)Education loan interest of $2,000, assuming the taxpayer is single and has income of $150,000.
• B)Home equity loan interest of $9,000 on a loan of $100,000, the proceeds of which were used to purchase an addition to the taxpayer's primary residence.
• C)Investment interest expense of $10,000, assuming the taxpayer has $15,000 of net investment income.
• D)Points of $2,000 paid on a mortgage loan for the purchase of a new principal residence.

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Definitions:

Organization

An arranged group of people working together towards common goals, typically structured and managed to meet a need or to pursue collective goals.

Mission Statement

An official synopsis of the intentions and moral values of a firm, group, or individual.

Culture

The sum of attitudes, customs, and beliefs that distinguishes one group of people from another, transmitted through language, material objects, ritual, institutions, and art.

Subculture Elitism

The belief or attitude that a certain subculture or group within a broader culture is superior to others, often leading to exclusion and discrimination.