Amy paid the following interest expense during the current year: Qualified home mortgage interest $5,000 Credit...

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Amy paid the following interest expense during the current year: Qualified home mortgage interest $5,000 Credit...

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

business accounting

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Answer 1

Answer #1

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.

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Answer 2

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