Which of the Following Interest Expense Amounts Is Not Deductible

question 78

Multiple Choice

Which of the following interest expense amounts is not deductible in 2018?

• 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 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:

Inequalities

Mathematical statements that compare two expressions using inequality symbols, showing if one is less than, greater than, or not equal to the other.

Equivalent

Two expressions that have the same value or represent the same mathematical quantity.

Free-Falling Object

An object that is falling under the sole influence of gravity, with no forces like air resistance acting upon it.

Acceleration

The rate of change of velocity of an object with respect to time.