Amy paid the following interest expense during the current year: Qualified home mortgage interest $5,000 Credit card interest $1,000 Personal bank loan interest $3,000 What is the amount of Amy's interest deduction for the current year?
a.$5,000
b.$6,000
c.$4,000
d.$3,000
e.$8,000
Option A Only qualified home mortgage interest is allowed as interest deduction fir the current year as per IRS 505. Both credit card interest and personal bank loan interest are not allowed as interest deductions. Comment if you face any issues |
Amy paid the following interest expense during the current year: Qualified home mortgage interest $5,000 Credit...
Jerry and Ann paid the following amounts during the current year: Interest on automobile loan $1,500 Interest on bank loan (proceeds were used to purchase municipal bonds) $5,000 Qualified home mortgage interest $3,150 What is the maximum amount they can use as interest expense in calculating itemized deductions for the current year? a.$6,500 b.$8,150 c.$3,150 d.$4,650 e.None of these choices are correct.
Last year, Jacques paid the following interest: Interest on home mortgage $7,300 Interest on loan to purchase furniture for personal residence $1,000 Interest on a loan used to purchase State of Louisiana general purpose bonds $1,800 If Jacques itemizes his deductions for last year, what is the amount of deductible interest expense? $7,300 $8,300 $9,100 $10,100
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