Which of the Following Is Not Deductible as Interest Expense

question 115

Multiple Choice

Which of the following is not deductible as interest expense on Schedule A?

• A)Loan fee charged for appraisal service
• B)Home mortgage interest
• C)Mortgage interest on a second residence
• D)Home mortgage prepayment penalties
• E)All of the above are deductible as interest expense

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Definitions:

Depression

a severe and prolonged downturn in economic activity, characterized by significant fall in spending and high unemployment.

Unemployment Rate

The level of unemployment within the labor force characterized by active job search efforts.

Inflation

The rate at which the average cost of goods and services ascends, leading to a decrease in monetary value over time.

Creditors

Individuals or institutions that lend money or extend credit to others, expecting repayment in the future with interest.