Which of the Following Interest Expense Amounts Is Not Deductible

question 29

Multiple Choice

Which of the following interest expense amounts is not deductible in 2017?

• 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:

Lithium

A chemical element, used in rechargeable batteries and as a mood stabilizer in psychiatric treatment.

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A mental condition marked by extreme mood swings between manic highs and depressive lows.

Depakote

A medication primarily used to treat seizure disorders, bipolar disorder, and to prevent migraine headaches.

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A neurological disorder characterized by recurrent, unprovoked seizures due to abnormal brain activity.