Which of the Following Interest Expense Amounts Is Not Deductible

question 40

Multiple Choice

Which of the following interest expense amounts is not deductible 2016?

• 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 a vacation home.
• 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:

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