Which of the Following May Be Deductible

question 15

Multiple Choice

Which of the following may be deductible?

• A)Bribes that relate to a U.S. business.
• B)Fines paid for violations of the law.
• C)Interest on a loan used in a hobby.
• D)All of the above.
• E)None of the above.

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Definitions:

Unsecured Party

A lender or creditor who provides credit without obtaining specific collateral as security for the loan.

Credit Card

A plastic card issued by a financial institution that allows the holder to borrow funds to pay for goods and services.

Repayment

The act of paying back money that was borrowed from a lender.

Homestead Exemption

A law permitting a debtor to retain the family home, either in its entirety or up to a specified dollar amount, free from the claims of unsecured creditors or trustees in bankruptcy.