Which of the Following Statements Regarding the Home Mortgage Interest

question 29

Multiple Choice

Which of the following statements regarding the home mortgage interest expense deduction is correct?

• A) Taxpayers may deduct interest expense on a limited amount of home equity indebtedness but they may deduct interest expense on an unlimited amount of home acquisition indebtedness.
• B) Taxpayers may deduct interest expense on a limited amount of acquisition indebtedness but an unlimited amount of home equity indebtedness.
• C) Taxpayers may deduct interest expense on a limited amount of acquisition indebtedness but may not deduct interest on home equity indebtedness.
• D) None of these statements are correct.

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Definitions:

Soma

In biological terms, it refers to the body of an organism as distinct from its reproductive cells, or in cellular anatomy, the cell body of a neuron.

Neuron

A specialized cell that conducts impulses through the nervous system.

Dendrite

The branched projections of a neuron that act to conduct the electrochemical stimulation received from other neural cells to the body, or soma, of the neuron from which it projects.

"Tree"

A perennial plant with an elongated stem, or trunk, supporting branches and leaves in most species.